MOUNTAIN VIEW COMMUNITY SCHOOL, INC. v. Rutland
2011 VT 65
Vt.2011Background
- Mountain View Community School, Inc. sought a property tax exemption under 32 V.S.A. § 3802(4) for lands owned or leased by colleges, academies or other public schools.
- The school is a Vermont nonprofit organized for educational purposes, licensed as an independent elementary school, and operates at two Rutland locations using the property for school purposes.
- From 1994–2007 Mountain View paid taxes under protest; after value increases in 2006–2007 it pursued the exemption and the City denied it.
- A 2008 preliminary injunction was entered based on a colorable case showing irreparable harm if the tax sale proceeded.
- A 2009 bench trial focused on whether Mountain View’s use of property met the public school exemption or the public use exemption; the court found no direct public benefit.
- The Vermont Supreme Court reversed, holding that Mountain View qualifies as a public school for the exemption and that the record supports the exemption for lands used for the institution’s educational purposes.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Mountain View qualifies under § 3802(4) as lands owned or leased by a public school. | Mountain View is a public school under Willard and uses the land for education. | The school failed to show use of land for educational purposes and public use requirements were not met. | Yes; Mountain View qualifies for the lands exemption. |
| Whether the trial court properly evaluated the 'public school' exemption independent from 'public use' concepts. | Willard and related cases support an independent public school exemption without conflating with public use. | The court correctly conflated exemptions by assessing public use rather than public school. | Exemption is independent; error to conflate the two. |
| Whether the land was actually used for educational purposes by Mountain View. | Property is used to run Mountain View’s elementary education and admissions serve the institution’s mission. | Evidence of use was not sufficiently demonstrated in the record. | Record supports use for educational purposes; exemption granted. |
Key Cases Cited
- Willard v. Pike, 59 Vt. 202 (1887) (public school exemption hinges on institution’s public educational purpose, not profit)
- Burr & Burton Seminary v. Town of Manchester, 172 Vt. 433 (2001) (school must use property for educational purposes to qualify)
- Berkshire School v. Town of Reading, 172 Vt. 440 (2001) (land must be used for educational purposes to be exempt)
- Town of Williston v. Pine Ridge School, Inc., 132 Vt. 439 (1974) (various § 3802(4) clauses are disjunctive; public school exemption independent)
- Stowe Preparatory School, Inc. v. Town of Stowe, 124 Vt. 392 (1964) (confirms public school exemption for certain private schools)
- Experiment in International Living, Inc. v. Town of Brattleboro, 127 Vt. 41 (1968) (public use vs. public school distinctions; focus on educational function)
- New York Institute for Education of the Blind v. Town of Wolcott, 128 Vt. 280 (1970) (public use considerations balanced with educational purpose)
- Town of Williston v. Pine Ridge School, Inc., 132 Vt. 439 (1974) (public school exemption independent of charitable use)