Hebron Academy, Inc. v. Town of Hebron
2013 ME 15
| Me. | 2013Background
- Hebron Academy is a private, nonprofit preparatory school owning real estate in Hebron and operating a liberal arts–style program.
- The Academy rents out about 1% of its facilities temporarily, a use not interfering with its primary purposes.
- Some Academy properties are subject to minor private rights/restrictions but do not affect use for academic purposes.
- Hebron sought a 2009 tax abatement; the Town denied due to filing deadline, Board of Assessment Review denied on same basis.
- Hebron filed suit for declaratory judgment that it is a literary/scientific institution and that its exempt property is not taxable; court granted exemption for most property but held 2009 taxes barred by res judicata, later amended to reimburse taxes for 2008, 2010, and 2011 with interest.
- Town appeals; Hebron cross-appeals on res judicata defense and 2009 tax status.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Hebron qualifies as a literary/scientific institution | Hebron is a literary/scientific institution under 652(1)(B). | Hebron may not fit the statutory definition; uncertain scope of term. | Yes; Hebron is a literary/scientific institution. |
| Whether the property is occupied or used solely for Hebron’s own purposes | Rental and minor restrictions are de minimis/incidental and do not defeat sole-purpose use. | Non-exempt uses may defeat sole-purpose use. | Yes; property is occupied/used solely for Hebron’s own purposes. |
| Whether res judicata bars relief for 2009 tax exemption | Board’s denial was not a merits judgment; res judicata should not apply. | Board decision was merits-based; res judicata bars 2009 relief. | Administrative res judicata bars relief for 2009. |
Key Cases Cited
- Hurricane Island Outward Bound v. Town of Vinalhaven, 372 A.2d 1043 (Me. 1977) (statutory interpretation where term ambiguous; guiding approach)
- Alpha Rho Zeta of Lambda Chi Alpha, Inc. v. Inhabitants of Waterville, 477 A.2d 1131 (Me. 1984) (education institutions as literary/scientific; occupancy use guidance)
- Inhabitants of Orono v. Kappa Sigma Society, 108 Me. 320 (1909) (university as literary/scientific institution)
- City of Lewiston v. Marcotte Congregate Housing, Inc., 673 A.2d 209 (Me. 1996) (non-exempt use can defeat sole-purpose occupation)
- Nature Conservancy of the Pine Tree State, Inc. v. Town of Bristol, 385 A.2d 39 (Me. 1978) (non-exempt rights of use affect exemption status)
- Salvation Army v. Town of Standish, 1998 ME 75 (Me. 1998) (incidental de minimis use not precluding exemption)
- Episcopal Camp Foundation, Inc. v. Town of Hope, 666 A.2d 108 (Me. 1995) (incidental use not precluding exemption where limited)
- Bristol, 385 A.2d 43-44 (Me. 1978) (analysis of incidental uses and exemption scope)
- Me. Cent. R.R. Co. v. Town of Dexter, 588 A.2d 289 (Me. 1991) (finality/administrative decisions; res judicata concept)
- Beegan v. Schmidt, 451 A.2d 642 (Me. 1982) (decision on merits for res judicata purposes)