Housing Partnerships, Inc. v. Owens
10 N.E.3d 1057
Ind. T.C.2014Background
- Housing Partnerships, Inc. sought a 2006 property tax exemption for its rental properties under Indiana Code § 6-1.1-10-16.
- Properties were rental housing in Bartholomew County, funded by rents, donations, grants, and federal funding.
- PTABOA denied the exemptions on March 13, 2007; the Indiana Board affirmed on April 6, 2010 for lack of probative evidence of charitable use.
- The Court affords great deference to the Indiana Board and reviews for arbitrariness, lawfulness, constitutional issues, jurisdiction, procedures, or substantial evidence.
- Housing Partnerships bore the burden to show ownership, occupancy, use, and public benefit to qualify for the charitable exemption.
- Jamestown Homes of Mishawaka and related Indiana caselaw require probative evidence that the government’s burden is relieved, not merely charitable acts or federal status.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the Indiana Board’s final determination was arbitrary, capricious, or an abuse of discretion. | Housing Partnerships contends the Board ignored uncontroverted evidence. | Board weighed evidence and found it not probative of charitable use. | No; Board’s weighing of evidence was reasonable. |
| Whether the Board properly applied Jamestown Homes and related law to deny the exemption. | Jamestown Homes requires proof that government burden is relieved. | Board correctly limited exemption where evidence failed to show relief of government burden. | Yes; Board’s interpretation was reasonable and not contrary to law. |
Key Cases Cited
- Jamestown Homes of Mishawaka, Inc. v. St. Joseph Cnty. Assessor, 909 N.E.2d 1138 (Ind. Tax Ct.2009) (affirms denial where government burden relief is not shown)
- College Corner, L.P. v. Dep’t of Local Gov’t Fin., 840 N.E.2d 905 (Ind. Tax Ct.2006) (exemption requires government burden relief by nonprofit housing)
- Indianapolis Elks Bldg. Corp. v. State Bd. of Tax Comm’rs, 251 N.E.2d 673 (Ind. App.1969) (charitable use must be more than nonprofit status)
- Foursquare Tabernacle Church of God in Christ v. State Bd. of Tax Comm’rs, 550 N.E.2d 850 (Ind. Tax Ct.1990) (exemption requires charitable acts benefitting public, not private amenities alone)
- Amax Inc. v. State Bd. of Tax Comm’rs, 552 N.E.2d 850 (Ind. Tax Ct.1990) (will uphold final determination if evidence supports authority)
- 6787 Steelworkers Hall, Inc. v. Scott, 933 N.E.2d 591 (Ind. Tax Ct.2010) (standards for reviewing tax exemption claims)