295 A.3d 147
Me.2023Background
- Hurricane Island Foundation, a nonprofit leasing ~2/3 of Hurricane Island since 2010, applied in March 2019 for a local property tax exemption as a “literary and scientific” institution under 36 M.R.S. § 652(1)(B).
- The Vinalhaven tax assessor denied the application (June 2019) as not meeting the “literary and scientific” standard; the Foundation pursued review labeled under M.R. Civ. P. 80B rather than seeking abatement.
- The Superior Court remanded to the assessor twice on legal-standard grounds; the assessor denied exemption again; the Foundation filed repeated Rule 80B/declaratory actions and ultimately prevailed in Superior Court, which held the Foundation was a scientific institution and exempt.
- The Town appealed, arguing the Superior Court lacked jurisdiction because the Foundation failed to seek abatement or properly bring a declaratory-judgment action.
- The Maine Supreme Judicial Court held the trial court had jurisdiction (treating the complaint as one for declaratory relief) but, on the merits, concluded the Foundation’s primary purpose is educational—not primarily scientific—and vacated the Superior Court’s exemption ruling, remanding to enter judgment that the Foundation is not exempt.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Subject-matter jurisdiction to review assessor under M.R. Civ. P. 80B | Foundation: Review preserved as certiorari/Rule 80B; complaint sought declaratory relief | Town: No direct Rule 80B appeal — plaintiff should have pursued abatement or a declaratory-judgment action | Court: Jurisdiction exists because the complaint can be treated as a declaratory-judgment action; Rule 80B labeling is not dispositive |
| Whether Foundation qualifies as a “scientific” institution under 36 M.R.S. § 652(1)(B) | Foundation: Conducts research and science education; integrates research and teaching, so qualifies as scientific | Town: Primary mission is educational/leadership development; science is applied/incidental, not the institution’s principal object | Court: Foundation’s primary purpose is educational; it is not a scientific institution for exemption purposes — exemption denied |
Key Cases Cited
- Hebron Acad., Inc. v. Town of Hebron, 60 A.3d 774 (Me. 2013) (elements and proof required for § 652 exemption)
- Hurricane Island Outward Bound v. Town of Vinalhaven, 372 A.2d 1043 (Me. 1977) (an institution devoted to teaching applied sciences was not a "scientific" institution for exemption)
- LaBonta v. City of Waterville, 528 A.2d 1262 (Me. 1987) (court may treat mislabeled pleadings as declaratory-judgment actions for jurisdictional purposes)
- Dowey v. Sanford Hous. Auth., 516 A.2d 957 (Me. 1986) (Rule 80B supplies procedure only where review is statutorily or otherwise available by law)
- Credit Counseling Ctrs., Inc. v. City of S. Portland, 814 A.2d 458 (Me. 2003) (abatement and declaratory judgment are available routes to challenge tax-exempt determinations)