79 N.J.L. 34 | N.J. | 1909
The opinion of the court was delivered by
The prosecutor claims exemption from taxation on its real estate upon the ground that it is a school not
The prosecutor was incorporated under the act of June 3d, 1890, for the incorporation of associations for the erection and maintenance of schools and institutions for educational purposes. Gen. Stat., p. 1934. This statute is similar in character to the one under consideration by the Court of Errors and Appeals in Englewood School v. Chamberlain, 26 Vroom 292, which held the property exempt. Since the decision of that ease, however, the schools which are exempted from taxation have been limited to those “not conducted for profit,” and it is insisted that the school in this case is conducted for profit. It is not contended that it is a profitable enterprise or that anyone concerned in the corporation seeks to make money out of it. Indeed, an examination of the act under which the Institute of Holy Angels is incorporated shows that the legislature did not contemplate that corporations under that act should bo commercial enterprises. As pointed out in the prosecutor’s brief there is no provision for capital stock nor for distribution of profits; it is not unlike a religions corporation or other society not for pecuniary profit. The contention of the defendant is that the school is conducted for profit because a tuition fee is required and a charge is made for board of the pupils. But clearly the charge for board would not make the school one conducted for profit unless it was shown, as it is not, that the charge was in excess of the cost. We do not mean to say that even if that had been proved, it would suffice to bring the school within the words
The next question is how much of the seven-acre tract'on which the buildings stand is necessary to the fair use and enjoyment thereof. The assessor had, in making his assessment, exempted the whole tract, and it was subsequently taxed by authority of the borough council. We have no reason 'to doubt that a tract of five acres was necessary in the case of a boarding school like this. In Stevens Institute v. Hoboken,
The value of the land, exclusive of the buildings, seems to have been $1,500 per acre; if that is correct, all in excess of five acres would he assessable at that rate. The buildings and five aeres are exempt. The assessment must he reduced in accordance with these views. If counsel cannot agree on the amount, application may be made to the court to fix it.