59 A.3d 1001 | Md. | 2013
Maryland’s Property Tax Code provides that a “religious group or organization is not subject to property tax if the property is actually used exclusively for,” inter alia, “a parsonage or convent.” Md.Code (2001, 2012 Repl.VoL), § 7-204 of the Tax-Property Article.
The case has its genesis in the request of the Church of Jesus Christ of Latter-day Saints
I.
The Church of Jesus Christ of Latter-day Saints, informally known as the Mormon Church, was founded in 1830 by Joseph Smith. In the years since its founding, the Church has grown to a worldwide membership of roughly 14.4 million people. At a local level, church members are divided geographically into wards, which are comparable to parishes or congregations in other faiths. Each ward is supervised by a bishop, who conducts weekly services for members of the ward at a local chapel. Each ward is part of a larger grouping, called a stake, and each stake is comprised of about ten wards. The stakes, in turn, are a part of a temple district, overseen by a temple president. The Washington, D.C. Temple District is made up of 42 stakes, divided into 425 wards, and covers Maryland, Virginia, the District of Columbia, Pennsylvania, and parts of Ohio, Delaware, New Jersey, and New York.
The Temple is considered to be a sacred site and only members of the Church who are in good standing may visit it. This permission to enter the Temple is referred to as a temple recommend, and it is granted for a limited time to members who strictly follow the Church’s teachings. Within the Temple, special religious sacraments, referred to as ordinances, are performed. These ordinances may take place only within the Temple, and they may be performed only by specific Church members, who are called ordinance workers. The ordinances include marriages, baptisms, and confirmations.
The Church is run by lay ministers, rather than paid clergy. Bishops, stake presidents, and ordinance workers are all called into service by the Church and perform their duties without compensation. Ordinance workers generally serve for a period of two years and rotate through different assignments at the Temple. They spend most of their time performing ordinances, but they also teach, instruct, minister, and counsel members of the Church within the Temple. A strict religious
The D.C. Temple opened in Kensington, Maryland in 1974. The Temple is generally open 14 hours a day, five days of the week, serving the roughly 145,000 members who live within the D.C. Temple District. The ordinance workers who serve at the Temple mostly come from outside the D.C. area. In order to accommodate ordinance workers from out-of-town, the Church purchased a 44-unit apartment complex for them to live in, located in Kensington about a mile from the Temple. Between 50 to 60 ordinance workers live in the complex, the majority of whom are retired, married couples. The ordinance workers worship together as a ward each Sunday at a chapel located on the Temple grounds. The Church charges the ordinance workers below-market-value rent as a means of off-setting the operating expenses of the complex.
The 1980 property tax exemption
The Church sought a property tax exemption for the apartment complex in 1979 and was turned down by the Supervisor of Assessments of Montgomery County. The Church sought the exemption pursuant to Article 81, Section 9(c), the then-applicable provision of the Maryland Code that permitted an exemption for properties that were used exclusively for religious purposes.
The appeals board stated that it was “persuaded that the apartments are used exclusively to house volunteers who are
The Church received the exemption until 2008, when the Supervisor of Assessments of Montgomery County did a periodic review of exempt properties in the county. Upon review, it was determined that the apartment complex should not receive a tax exemption.
The Church appealed the decision to the Property Tax Assessment Appeals Board for Montgomery County, which affirmed the decision of the Supervisor of Assessments, again without explanation. The Church appealed the decision of the board to the Maryland Tax Court, which held a hearing on the matter on June 3, 2009. The Church offered testimony from three Church officials, including a former ordinance worker, who described the organization of the Church, elaborated on the duties of ordinance workers, and provided details about the apartment complex. Other Church officials testified about how the rents typically have not covered the operating costs of the apartment complex and the Church’s view on what should constitute a parsonage and convent.
Robert Young, the Associate Director of the State Department of Assessments and Taxation,
Young said that he used the ordinary dictionary definition of the word parsonage, as well as the description offered by the Court of Special Appeals in East Coast Conference of the Evangelical Covenant Church of America, Inc. v. Supervisor of Assessments, 40 Md.App. 213, 388 A.2d 177 (1978).
And so based on that reading and based on the common ordinary dictionary meaning my definition of a convent or monastery is where a group of men or women take certain vows: Poverty, celibate chastity and obedience to a superi- or, an abbot or a prioress. And then they live in a convent building or they live in a monastery building.
Young stated he took additional support from a Tax Court case, Life in Jesus, Inc. v. Supervisor of Assessments, No. 06-MI-FR-0610 and Cross-Appeal No. 06-M1-FR-0621 (Md. Tax Court Dec. 31, 2008), in which the Tax Court affirmed a denial of a monastery exemption. Young noted that convents historically have housed groups of unmarried men or women who take lifelong vows of poverty, celibate chastity, and obedience, and live together in a communal lifestyle. He added that not all of these elements are required, as the office applies a “totality of the circumstances” approach in deciding whether to grant an exemption. Exemptions have been granted for Hindu and Buddhist monasteries or convents. Young acknowledged, however, that the office purposely does not maintain any published guidelines containing definitions of these terms and giving guidance to local assessors on how to apply the convent and parsonage property tax exemptions.
The Maryland Tax Court affirmed the decision of the Property Tax Assessment Appeals Board denying an exemption to the apartment complex. The Tax Court decided that the complex does not qualify as a parsonage or a convent under
In defining the common ordinary dictionary meaning for the term convent or monastery, this Court has employed a similar analysis as it did in defining a parsonage. The dictionary definitions of convent and monastery do not include married men and women and single persons living separate lives in separate households. Ordinance workers do not take vows of poverty, chastity and obedience to a superior as do[es] a typical monk or nun. Ordinance workers do not make lifetime commitments like nuns and monks and do not keep a common purse or share things in common. Moreover, as is the case with supplying a house to a minister or supplying a place to live in a convent, nuns and ministers do not pay rent to the Church for a home in which to live.
The Tax Court concluded that the definitions of parsonage and convent used by the Supervisor of Assessments did not violate the Establishment Clause of the First Amendment to the U.S. Constitution. The Tax Court found that the State was not discriminating among religions, but rather applying a neutral statute with a secular purpose in a manner that did not advance or inhibit religious belief.
The Church filed a petition for judicial review by the Circuit Court for Montgomery County, which held a hearing on the matter on December 14, 2010. In an order issued August 31, 2011, the Circuit Court reversed the decision of the Tax Court and ruled that the apartment complex qualified both as a parsonage and a convent and should be granted a tax exemption.
On the question of whether the statute violates the Establishment Clause, the Circuit Court ruled that “[t]he law could not constitutionally require that to qualify for an exemption a religious organization have an organizational structure exactly parallel to that found in other religions, denominations, or churches, Christian or otherwise.” The Circuit Court observed that the Church has a different structure than other religions, and that certain rites may only be performed in the Temple and then only by ordinance workers. The ordinance workers are trained in their duties, serve “a discrete group who reside within that District,” and live in housing furnished by the Church. The Circuit Court concluded that it could not be a requirement of the law that all religions must establish the same type of organizational structure in order to receive a tax benefit.
II.
We analyze the decisions of the Tax Court in the same manner as other administrative agencies. Frey v. Comptroller of the Treasury, 422 Md. 111, 136, 29 A.3d 475 (2011). This means that we look through the decision of the Circuit Court and evaluate directly the conclusions reached by the Tax Court. Id. at 136-37, 29 A.3d 475. “[W]e may not uphold the final decision of an administrative agency on grounds other than the findings and reasons set forth by the agency.” Id. at 137, 29 A.3d 475. Our review is “narrow,” in that we do not “substitute our judgment for the expertise of those persons who constitute the administrative agency.” Id. Instead, this Court applies the “substantial evidence” standard, in which “we consider whether a reasoning mind reasonably could have reached the factual conclusion the agency reached.” Id. (quotation marks omitted) (quoting State Ins. Comm’r v. Nat’l Bureau of Cas. Underwriters, 248 Md. 292, 309, 236 A.2d 282 (1967)).
The parties here do not contest the factual findings, but the Church disagrees with the conclusions of law drawn by the Tax Court. The deference we accord to the agency’s factual findings does not extend to the agency’s purely legal conclusions. Frey, 422 Md. at 138, 29 A.3d 475. Rather, the resolution of legal issues is “uniquely within the ken of a reviewing court.” Id.; see Supervisor of Assessments v. Keeler, 362 Md. 198, 208, 764 A.2d 821 (2001) (quoting State Dep’t of Assessments and Taxation v. Consumer Programs, Inc., 331 Md. 68, 72, 626 A.2d 360 (1993)) (“In short, a reviewing court is authorized to reverse a decision of the Tax Court, if the agency ‘erroneously determines or erroneously applies the law.’ ”). With respect to an agency’s conclusions of law, a
The present case involves the legal correctness of the Tax Court’s construction of the words parsonage and convent as they are employed in § 7-204 (“Property that is owned by a religious group or organization is not subject to property tax if the property is actually used exclusively for: ... (2) a parsonage or convent.”). The parties dispute whether the Tax Court is owed any deference in its construction of those terms. The Supervisor of Assessments argues that we are presented with a mixed question of law and fact and, accordingly, the conclusions of the Tax Court should be given deference. The Church, in contrast, argues that the Tax Court misstated the law, by applying a “novel interpretation” of the words parsonage and convent. As to that legal error, the Church asserts, the Tax Court is owed no deference. We agree with the Church. The meaning of the words parsonage and convent is a matter of statutory construction and thus purely a legal question. See Marsheck v. Bd. of Trs. of the Fire & Police Employees’ Ret. Sys. of the City of Baltimore, 358 Md. 393, 402, 749 A.2d 774 (2000) (noting that the meaning of the word “injury” in a retirement benefits statute is “a solely legal issue”).
We are aware of, but find inapplicable here, the rule of statutory construction by which “[w]e give deference to a consistent and long-standing construction given a statute by an agency charged with administering it.” Stachowski v. Sysco Food Servs. of Baltimore, Inc., 402 Md. 506, 517, 937 A.2d 195 (2007) (citing Marriott Employees Fed. Credit Union
As to the interpretation of the word convent, there does not appear to be a record of a long-standing practice in the Tax Court of construing the term. Furthermore, the record does not suggest that the Tax Court, in construing convent as it did, relied on a long-standing practice of that court to employ such a construction. Instead, the Tax Court appeared to rely on case law and dictionary definitions of the word in order to ascertain the meaning of it and, only then, applied that meaning to decide, ultimately, that the Church’s property at issue was not a convent.
Instead, we make an independent determination of the meaning of the statutory language at issue. In doing so, we rely on the often-cited rules of statutory interpretation to construe the meaning of convent as the word is employed in § 7-204. “A court’s primary goal in interpreting statutory language is to discern the legislative purpose, the ends to be accomplished, or the evils to be remedied by the statutory provision under scrutiny.” Gardner v. State, 420 Md. 1, 8, 20 A.3d 801 (2011) (quoting State v. Johnson, 415 Md. 413, 421, 2 A.3d 368 (2010)). When the words of a statute are ambiguous, we attempt to resolve that ambiguity “by searching for legislative intent in other indicia, including the history of the legislation or other relevant sources intrinsic and extrinsic to the legislative process.” Gardner, 420 Md. at 9, 20 A.3d 801 (quoting Johnson, 415 Md. at 422, 2 A.3d 368). “In every case, the statute must be given a reasonable interpretation, not one that is absurd, illogical or incompatible with common sense.” Id. As we apply those rules of construction to the present case, we remain mindful that “if any real doubt exists as to the propriety of [a tax] exemption that doubt must be resolved in favor of the State.” Keeler, 362 Md. at 209, 764 A.2d 821 (quoting Chesapeake and, Potomac Telephone Co. of
III.
The parties offer starkly different interpretations of both parsonage and convent, as those terms are employed in § 7-204. We, however, need not decide what is meant by the word parsonage because, as we shall see, the property at issue qualifies as a convent for purposes of § 7-204. Again, that section, “Religious groups or organizations,” provides in its entirety:
Property that is owned by a religious group or organization is not subject to property tax if the property is actually used exclusively for:
(1) public religious worship;
(2) a parsonage or convent; or
(3) educational purposes.
We concur with the parties, the Tax Court, and the Circuit Court that neither the plain language of § 7-204 nor the statutory scheme within which it fits sheds much light on the meaning of the word convent. The word is not defined in either § 7-204 or elsewhere in the statute. The parties do not point to, and our research has not disclosed, any legislative history that suggests a meaning for the word convent at the time of the 1972 adoption of the tax exemption or as part of the 1985 creation of the Tax-Property Article. All that is apparent from the statute is that a property asserted to be a convent must be affiliated with a “religious group or organization” and not be used exclusively for public religious worship or educational purposes, because those uses are listed separately as reasons for granting an exemption. This narrows the meaning of the term but offers little by way of affirmative guidance.
The 1970 report of the Maryland Legislative Council Committee on Taxation and Fiscal Matters sheds some light on the thinking of lawmakers at the time the exemption was creat
There is, though, a difference between expanding a property tax exemption to include property that was not intended by the General Assembly to be covered, and properly construing the words of an exemption to ensure that all property entitled to an exemption receives one. It is to this latter end that we look to the dictionary definitions of convent offered by both parties, as well as the definitions used by our sister courts, in an attempt to set forth a standard that can be applied to future cases. See Deibler, 423 Md. at 67, 31 A.3d 191 (citation
The Supervisor of Assessments cites five dictionary definitions, all taken from various editions of Webster’s dictionaries, some of which are also cited in support by the Church.
Although we construe strictly the language of property tax exemptions, we have generally taken a common-sense approach when it comes to religious exemptions, in order to achieve a fair construction of the statute. See Maryland State Fair and Agric. Society, Inc. v. Supervisor of Assessments, 225 Md. 574, 588, 172 A.2d 132 (1961) (noting that “tax-exemption statutes are to be strictly construed, but a strict construction permits a fair one, so as to effectuate the legislative intent and objectives”). For instance, in Keeler this Court held that 16.5 open acres of land owned by a church, that could not be developed for any purpose, could qualify under the church’s exemption for public religious worship. 362 Md. at 222, 764 A.2d 821. In deciding that it could, this Court noted that the focus is on whether land was “being put to uses other than the charitable, educational, or religious use which gave rise to the exemption.” Id. at 216-17, 764 A.2d 821. The
Similarly, in Morning Cheer this Court approved an exemption for a Bible study retreat that was used for ten weeks during each summer for daily religious services, prayer meetings, and Bible study. 194 Md. at 444, 447, 71 A.2d 255. We recognized that the use was “different from that of an ordinary church and parsonage,” and we allowed for an exemption for about 35 acres of cleared land that housed various buildings associated with the retreat because they were necessary for public worship. Id. at 447, 71 A.2d 255. The retreat did not operate as a typical place of public worship and remained empty for most of the year, but we looked to the “primary objects” for which the property was used to reach our conclusion. Id. at 446, 71 A.2d 255.
Reviewing the definitions offered by the parties, we find that the Tax Court’s definition of what constitutes a convent is too narrow and should not be the 'exclusive interpretation of that term. There are two main qualities shared by most of the definitions: a convent is (1) a community of people who are (2) bound by strict religious vows. The general secondary meaning of convent is the building where a community of people bound by these vows lives together. Marital status is not a part of these definitions. Nor are specific vows of poverty, chastity, and obedience. The words monk and nun are frequently used in describing convents and monasteries, but there is no indication of what qualities a “typical” monk or nun must possess. The definitions also do not mention lifetime commitments, common purses, or paying rent to a church.
We agree with the Church that the Tax Court’s interpretation accords only with certain religious traditions and is more closely aligned with, for instance, Roman Catholic or Anglican traditions. We are mindful of the dangers in adopting a definition that adheres too closely to the doctrine of a single religion.
Distilling the various definitions offered by the parties and researched by this Court, we have concluded that there are several basic qualities a convent must contain in order to be eligible for a tax exemption: A convent consists of a community of people who live together, follow strict religious vows, and devote themselves full-time to religious work. This definition does not expand impermissibly the scope of the property tax exemption, and it avoids an unduly narrow reading of the statute.
In light of our decision as to what constitutes a convent, we conclude that the Tax Court applied an incorrect legal standard in determining whether the apartment complex qualified as a convent for purposes of § 7-204.
JUDGMENT OF THE CIRCUIT COURT FOR MONTGOMERY COUNTY AFFIRMED; CASE REMANDED TO THAT COURT WITH DIRECTIONS TO REMAND THE CASE TO THE TAX COURT FOR FURTHER PROCEEDINGS CONSISTENT WITH THIS OPINION. COSTS TO BE PAID BY APPELLANT.
. § 7-204. Religious groups or organizations.
(1) public religious worship;
(2) a parsonage or convent; or
(3) educational purposes.
All references hereinafter to the Maryland Code are to the Tax-Property Article.
. According to the official website of the Church of Jesus Christ of Latter-day Saints, the word "day” in "Latter-day Saints” is not capitalized. We shall use the Church’s preferred style, except when citing to case names outside of Maryland that do not follow this convention.
. Neither party argues that the apartment complex is used exclusively as a place of "public religious worship,” or for "educational purposes,” so we do not address these portions of § 7-204.
. The exemption in place at the time covered the following property:
"Property owned by a religious group or organization and actually used exclusively for public religious worship, including parsonages and convents, and property owned by any such group or organization and actually used exclusively for educational purposes.”
Md.Code (1957, 1980 Repl.Vol.), Article 81, § 9(c).
. In creating the Tax-Property Article, the revisors noted that § 7-204 was "derived without substantive change" from the earlier Article 81, § 9(a) and (c). Md.Code (1986), § 7-204. The previous wording of the exemption provision applied to property "actually used exclusively for public religious worship, including parsonages and convents ...” This wording at least suggests that, under that earlier version of the statute, a
. Young later was appointed the Director of the State Department of Assessments and Taxation.
. In East Coast Conference of the Evangelical Covenant Church of America, Inc. v. Supervisor of Assessments, the intermediate appellate court set out a definition of parsonage as "a house supplied to a parish minister by the parish congregation or church.” 40 Md.App. 213, 215-16, 388 A.2d 177 (1978). Young interpreted East Coast Conference as requiring that a minister who lives in the parsonage must have an identifiable, local congregation. In applying that definition, Young said
. The Tax Court found that it was clear that an apartment complex could not be a parsonage and the ordinance workers, although engaged in performing church sacraments, did not qualify as ministers. Moreover, the Tax Court ruled that the multi-state area served by the Temple did not meet the definition of a local, identifiable congregation, as required under East Coast Conference.
. As to the meaning of parsonage, the Circuit Court found that the Tax Court erred in interpreting East Coast Conference as requiring that a
. Prior to issuing its ruling, the Tax Court heard the testimony of Young, the associate director of the State Department of Assessments and Taxation. Young testified that there are no published guidelines or written directions to assist tax assessors in interpreting § 7-204. The ultimate determination of whether to grant an exemption is based on the judgment of Young, who said he conferred with the Supervisor of
Young testified that he was previously unaware of the apartment complex or the tax exemption it had received because the exemption was granted before Young joined the State Department of Assessments and Taxation. Young stated that his definition of convent has been applied in a "consistent” manner since late 1980, when he joined the department. Other than Young’s testimony, however, there is nothing in the record presented to or relied upon by the Tax Court indicating that the Tax Court had a long-standing practice of employing the same definition as the one employed by Young.
. Parsonages, but not convents, were a part of the Maryland Code at the time of the 1970 report. The language of the applicable statute at that time exempted the following property:
(4) Churches, parsonages, etc. — Houses and buildings used exclusively for public worship, and the furniture contained therein, and any parsonage used in connection therewith, and the grounds appurtenant to such houses, buildings and parsonages and necessary for the respective uses thereof.
Maryland Code (1957, 1969 Repl.Vol.), Article 81, § 9(4).
. The Supervisor of Assessments cites the following dictionary definitions for convent and monastery:
Webster's New World Dictionary of the American Language — Second College Ed. (1976):
Convent: 1. A community of nuns or, sometimes, monks, living under strict religious vows. 2. The building or buildings occupied by such a group.
Monastery: 1. A place of residence occupied by a group of people, esp. monks, who have retired from the world under religious vows. 2. Those living in such a place.
Webster’s New Collegiate Dictionary (1977):
Convent: A local community or house of a religious order or congregation; esp: an establishment of nuns.
Monastery: A house for persons under religious vows; esp: an establishment for monks.
Webster's Ninth New Collegiate Dictionary (1985):
Convent: A local community or house of a religious order or congregation; esp: an establishment of nuns.
Monastery: A house for persons under religious vows; esp: an establishment for monks.
Webster’s II New Riverside University Dictionary (1988):
Convent: 1. A community, esp. of nuns, bound by vows to a religious life under a superior. 2. The building or buildings occupied by a convent.
Monastery: 1. The dwelling place of a community of religious persons, esp. friars. 2. The community of friars residing in a monastery. Webster’s II New College Dictionary — Third Ed. (2005):
Convent: 1. A community, esp. of nuns, bound by vows to a religious life under a superior. 2. The building or buildings occupied by a convent.
Monastery: 1. The dwelling place of a community of religious persons, esp. friars. 2. The community of friars residing in a monastery. The Church in its brief cites with approval the latter two definitions found in Webster’s II New Riverside University Dictionary (1988) and Webster’s II New College Dictionary — Third Ed. (2005).
. The Church cites the following two additional definitions:
Merriam Webster's Collegiate Dictionary (10th ed.1993):
Convent: A local community or house of a religious order or congregation.
*139 Monastery: A house for persons under religious vows.
Black’s Law Dictionary (2d ed.1910):
Convent: A religious house.
. See Ass’n for Educ. Dev. v. Hayward, 533 S.W.2d 579, 584 (Mo.1976) ("a community of persons devoted to religious life under a superior”); Diocese of Cent. New York v. Schwarzer, 23 Misc.2d 515, 519, 199 N.Y.S.2d 939 (N.Y.Sup.Ct.1960) (“an abode for persons devoted to a particular religious life”), aff'd, 13 A.D.2d 863, 217 N.Y.S.2d 567 (1961). The Church acknowledges that other courts have interpreted the word convent in a manner that would arguably not include the apartment complex because of a requirement that the religious workers be in seclusion. See Missionaries of Our Lady of La Salette v. Village of Whitefish Bay, 267 Wis. 609, 66 N.W.2d 627, 632 (1954) ("a place where men or women bound by vows in a religious organization live a community life in seclusion or retirement upon the premises”).
. The Church cites Merriam Webster’s Collegiate Dictionary (10th ed.1993) for the definitions of monk (“a man who is in a member of a religious order and lives in a monastery”) and nun (“a woman belonging to a religious order”). The Church acknowledges, however, that within the longer definition of nun is a description of a person who is "under solemn vows of poverty, chastity, and obedience.”
. We also have examined a case of the Tax Court that Young cited as being helpful in interpreting the meaning of the word convent. See Life in Jesus, Inc. v. Supervisor of Assessments, No. 06-MI-FR-0610 and Cross-Appeal No. 06-MI-FR-0621 (Md. Tax Court Dec. 31, 2008). Young testified that the case concerned a group of married couples who lived in separate houses, but frequently shared meals and held group Bible study sessions together. According to Young, their religious faith allowed for married nuns and priests. The couples sought, but were denied, a tax exemption as a convent and the Tax Court affirmed the denial, Young stated. There may have been testimony during the hearing before the Tax Court relevant to the case sub judice, but the final order of the Tax Court does not shed any light on its interpretation of the word convent. The only mention of convent is in reference to a “convent of nuns” living on the property, and the Tax Court’s observation that other portions of the property in question did not fall under the parsonage or convent exemption. There is no explanation for why portions of the property did not qualify as a convent, or what definition of convent the Tax Court applied in reaching its decision.
. See Presiding Bishop of the Church of Jesus Christ of Latter-Day Saints v. Ada County, 123 Idaho 410, 849 P.2d 83, 98 (1993) (Johnson, J., dissenting) ("Will only those ‘traditional’ religious organizations that
. As noted earlier, because we hold that the apartment complex is a convent, it is unnecessary for us to decide in this case whether the Tax Court erred in its interpretation of the word parsonage.