117 Ga. 678 | Ga. | 1903
Lead Opinion
This case involves the question whether Lucy Cobb Institute loses its exemption from taxation under the Political Code, § 762, because of the fact that it collects a tuition fee from its students. In 1857 the citizens of Athens subscribed to a fund which was subsequently used in the purchase of the present property. These subscriptions were entered on a book still kept, but beyond that no stock or other evidence of ownership was ever issued, and the subscribers have never at any time exercised any control of the.school. In 1859 some of these subscribers and their successors were incorporated under the name of “The Lucy Cobb Institute,” with authority “ to hold property and do acts necessary for educational purposes.” Land was bought, buildings were erected, and the school was organized and successfully conducted until 1882, when George I. Seney donated $10,000, which with other subscriptions was used for the erection of a chapel and commencement hall on the land of the institute. A successful college has since been conducted, and is now in operation. The record shows that nothing in the nature of dividends has ever been declared; that all receipts from tuition or otherwise are appropriated exclusively to the maintenance of the school and its buildings; and that the property is in no manner used for corporate or individual income or profit, nor has any corporate or individual income been derived, but that the entire property and receipts are devoted solely and directly to the carrying on of the school. It does appear, however, that tuition fees are charged those in attendance on the college. It is claimed that even though the property as a college building would ordinarily be exempt, it is subject to taxes, because tuition is charged; and the ruling in Mundy v. Van Hoose, 104 Ga. 292, is cited in support of that contention. That case was undoubtedly rightly decided. The property there involved had once belonged to an educational corporation, but had been by it conveyed by warranty ■deed to Yan Hoose and Pearce, and was in use by them as a source of personal income and support. They lived on the premises with their families; part of the land was used for farming purposes; a small house was rented to tenants; and the main buildings were used for giving exhibitions for which charges were made. In these buildings they conducted a boarding-school, and all of the income and profit went to the private owners’ individual and personal use. There was nothing to indicate that the property had been dedicated
In pursuance of the power conferred by the constitution, Civil Code, § 5884, the legislature (Acts of 1878-9, p. 33, Political Code, § 762) enacted: “ The following described property shall be exempt from taxation, to wit: All public property, places of religious worship, and places of burial; all institutions of purely public charity all buddings erected for and used as a college, incorporated academy, or other seminary of learning; the real and personal estate of any public library, and that of any other literary association, used by or connected with such library; all books, philosophical apparatus, paintings, and statuary of any company or association, kept in a public hall, and not held as merchandise or for purposes of sale or, gain: Provided, the above-described property so exempted be not used for purposes of private or corporate profit or income.” There is no room to apply the rule as to strict construction; for the exemption of college buildings is clear and unequivocal. The only question which can arise is whether the grant made at the beginning of the clause was taken away at the end,- — -whether the exemption expressly allowed was nullified by the proviso. Long-continued and universally recognized canons of construction admit of but one answer. So far as we can learn, this is the first attempt
In construing statutes it is the duty of the court above all else to give effect to the intent of the lawmaking power. That must be discovered primarily from the language used; but words and intent are not always the same, and hence the constant necessity for applying the rule which forbids a severe literalism at the sacrifice of the spirit. This is particularly applicable to constitutions which are necessarily comprehensive and free from the details into which statutes more properly enter. Yerbal niceties are to be ignored, for the controlling question is, what did the convention intend ? To answer that inquiry the view must be wide, the condition and history of the times be examined, the past policy and the present purpose of the body towards those institutions considered. Was it friendly or adverse ? Was a new policy to be inaugurated, or the old continued ? If there be apparent inconsistency, incongruity, or conflict, the constitution must be so construed as to let its provi
It is apparent from the history of the times, and the language used, that the convention was continuing the former exemption to the same class of property and under the same conditions on which
Rent is compensation paid for the use of real estate. In a sense the’ owner who uses it pays rent for his own property, and in bookkeeping would charge himself what he could get from another. In that sense a charitable corporation might be said to pay rent for the use by itself of its own buildings, even where it made no charge against those who were the beneficiaries of the charity. But no one would claim that such use of its own buildings would bring the property within the proviso, or make such use the earning of profit. Nor would it be different, so far as the earning of rent is concerned, if, instead of making no charge against the inmates, fees should be required for services rendered or food supplied. The charges against the beneficiaries would not be for the use of real estate as such, but in consideration of tuition, clothing, food, or service. This certainly would be true where the amount of such collections did not exceed the cost of maintenance, and left no surplus. Property used for raising income is not exempt, although the income may be used for charitable purposes; but property used for charitable purposes is not taxable, although in the operation of the charity incidental income may be derived. Upon analysis such will be found to be the law previously declared by this court, and by others under statutes and constitutions substantially like our own. In the case of Trustees v. Bohler, 80 Ga. 159, the court was considering the question as to whether income-producing land held by the trustees of a poor-house was taxable, and Chief Justice Bleckley said (p. 163): “Itmay be thought the produce of a pauper farm, connected with an alms-house, would come within the terms ‘ profit or income,’ and so they would, perhaps, as to any surplus over and above the consumption of the inmates and others attached to the establishment; but the main purpose being to furnish employment, to the paupers, and supply them with subsistence at the seat of the institution, the element of profit or income would be altogether secondary and incidental. The property, therefore, would not be used for profit or income in the same sense as if it were farmed or rented out, and not used at all by the inmates, but by others paying for its use as productive capital. The scheme of exemption as to other than public property seems to be this: to exempt all that is used immediately and directly as a part of the establishment in the con
In Yale University v. New Haven, 71 Conn. 316, the court held that the fees of students, whether apportioned as room-rent or tuition, could not be treated as income from real estate. The sum paid for the use of the room does not alter the character of the. occupation. “A church is none the less a church because the worshippers contribute to the support of services by way of pew rent. A hospital is none the less a hospital because the beneficiaries contribute something towards its maintenance. And a college is none the less a college because its beneficiaries share the cost of maintenance ; and it is immaterial whether such contribution is lumped in one sum, or apportioned to sources of expense, as tuition, room-rent, lecture-fee, dining-hall, etc.” p. 328. The constitution of Pennsylvania provides that the General Assembly may exempt from taxation “ actual places of religious worship, . . and institutions of purely public charity.” It was held in County of Northampton v. Lafayette College, 128 Pa. St. 132, that the institution did not lose its character as a purely public charity because tuition was charged in order to make the school self-sustaining. Some of the pupils paid full rate, some half rate, and some nothing. The tuition with the income from gifts paid the expenses, but the buildings were used exclusively for school purposes, and were exempt from taxation. In Philadelphia v. Women’s Christian Assn., 125 Pa. St. 572, the exemption was not lost nor was its character as a charity destroyed “if to some extent it receive a revenue from the recipients of its bounty.” There was no stock in the association, no element of gain in its object or operation; and the mere fact that it charges a small sum to a portion of those who feed at its table and enjoy the shelter of its roof does not destroy its character as a purely public charity. Nor does a camp-ground lose its exemption as a public charity from the fact that it makes charges for the use of its privileges. Davis v. Camp Meeting Assn., 57 Ohio, 257. In Sisters v. Township of Chatham, 52 N. J. L. 373, the corporation did not lose its exemption as a public charity, where some of the scholars were educated gratuitously and the money derived from
The effect of charging tuition fees is the real matter in issue. The immediate party to the cause is the Lucy Cobb Institute, but its right is infinitesimal by comparison with the public interests at stake, under which taxation not only for the future, but back taxes are involved. We have therefore mainly dealt with this controlling and far-reaching proposition, but must not let the rights of the individual be lost sight of in the greater public issue involved. For many years the trustees were the active-managers of the institution, collected the fees, and paid the salaries and other expenses. That not being altogether satisfactory, a new arrangement was made with the principal. The written contract is not in the record; but it appears that she became the active manager, made the collections, paid the expenses, and appropriated a certain amount to the repair of the buildings, and the balance was her compensation. Whether this be called a lease, a working contract, an agency, or what not, the legal effect was the same. The school, it seems, was
The record is very meager, and it may be that this institution has property which is taxable. If so, that can be shown on the final hearing; but-in view of the positive allegation and the uncontradicted proof the court rightly granted the injunction against the tax fi. fa. as levied; and the judgment is
Affirmed.
Concurrence Opinion
concurring specially. I concur in the foregoing opinion of Mr. Justice Lamar. It is to me incredible that the members of the convention of 1877 who framed the constitution, or the people who adopted that instrument, intended to strike down all the colleges of the commonwealth, other than those owned and maintained by the State, as must have been the case if any such burden of taxation had been laid upon them at that time as is now claimed. The enlightened policy of the State had been, not only to exempt from taxation the buildings and grounds of these institutions, but to exempt their endowments also ; and this had been true without regard to what political party was in power. The party which held the reins of government in the days of reconstruction did not for a moment consider the reversal of this time-honored policy. There was no popular demand, or indeed a demand of any sort, for the reversal of this wise policy, before the constitutional convention of 1877 was assembled, nor pending its proceedings, nor after its adjournment, when the constitution was submitted to the people for ratification. It may well be doubted if
By an act approved February 21, 1850, it was provided that all “ colleges in this State shall be exempt from taxation, and shall be upon the same footing with the University of Georgia.” That statute
So believing, I am glad to concur in a judgment which refuses to hold liable for taxation the buildings and grounds of the Lucy Cobb Institute, an institution of learning bearing an honored and beloved name, and having a long record of the most blessed service to the daughters of Georgia and the South. The benevolence of the lamented Thomas R. R. Cobb, and the later gift of the philanthropic citizen of New York to more perfectly equip it for service, are properties which Georgia has put beyond the tithing touch of the tax-gatherer, and these sacred offerings should be securely held as long as Georgia possesses a spark of interest in hqman enlightenment or a particle of gratitude for patriotic benevolence.
Dissenting Opinion
dissenting. The record disclosing that the buildings were used for purposes of income, this case is controlled in principle by that of Mundy v. Van Hoose, 104 Ga. 292, and other decisions of this court which are therein cited.