Fraternal Order of Eagles 3988, Inc. v. Morgan County Property Tax Assessment Board of Appeals
5 N.E.3d 1195
| Ind. T.C. | 2014Background
- Eagles is a mutual benefit nonprofit incorporated in 1999 under Indiana law; mission includes fraternal and charitable aims with motto 'People helping People.'
- In 2006, Eagles owned a 10,500 sq ft lodge on 2.23 acres used to raise funds for charities and host member events, occasionally allowing other charities to use the property for free.
- Eagles filed an Application for Property Tax Exemption in 2006 seeking either a fraternal beneficiary association exemption or a charitable purposes exemption; PTABOA denied it in August 2006.
- Eagles appealed to the Indiana Board; in 2011 the Indiana Board held Eagles was not entitled to either exemption after hearing evidence (donations, records, affidavits, usage study).
- Eagles filed this original tax appeal in January 2012; the court defers to the Board’s determinations and reviews only for listed statutory grounds.
- The court ultimately affirms the Indiana Board’s final determination after analyzing whether Eagles met the statutory definitions of a fraternal beneficiary association and a charitable property use.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Eagles qualifies as a fraternal beneficiary association. | Eagles argues the Board erred by not recognizing its Fraternal Order of Eagles status and conflicting with prior opinions. | Board relied on Indiana statute and Fort Wayne Sport Club definition; Eagles failed to prove six statutory elements. | Affirmed; Eagles did not establish a prima facie fraternal beneficiary association. |
| Whether Eagles qualifies for the charitable purposes exemption. | Eagles contends that fraternal use of the lodge equates to charitable use and evidence supports predominant charitable use. | Board found no prima facie showing that property was exclusively/predominantly used for charitable purposes and record failed to compare exempt vs nonexempt use. | Affirmed; Eagles failed to prove exclusive or predominant charitable use. |
Key Cases Cited
- Tipton Cnty. Health Care Found., Inc. v. Tipton Cnty. Assessor, 961 N.E.2d 1048 (Ind. Tax Ct.2012) (deference to Board; strict burden on taxpayer; substantial evidence standard)
- Fort Wayne Sport Club, Inc. v. State Bd. of Tax Comm’rs, 258 N.E.2d 874 (Ind. App. 1970) (definition of fraternal beneficiary association tied to statute)
- Indianapolis Elks Bldg. Corp. v. State Bd. of Tax Comm’rs, 251 N.E.2d 673 (Ind. App. 1969) (charity exemption requires more than social activities; relief of human want)
- Shelbyville MHPI, LLC v. Thurston, 978 N.E.2d 527 (Ind. Tax Ct.2012) (final determinations must comply with law and substantial evidence)
- Long v. Wayne Twp. Assessor, 821 N.E.2d 466 (Ind. Tax Ct.2005) (prima facie case requires walking through every element)