197 S.E. 302 | W. Va. | 1938
The question here is shall certain property be exempted from taxation. The property is held under a trust established in 1933, requiring that the "income and principal be divided among" certain religious, educational and charitable institutions. The trust indenture was approved by the state tax commissioner, and the property was not initially taxed. In 1936, the trustee entered into a "lease-sales" contract of the property with Cinderella Building Company. In 1937, the commissioner withdrew his approval of the trust, so far as it related to the property in question, and it was assessed for taxation against the trustee. In a proceeding before the circuit court, the assessment was upheld.
Constitution, Article 10, Section 1 permits property used for educational, religious or charitable purposes to be exempted by law from taxation. Code,
The contract purported to lease the property for a term of five years and two months. The consideration was $15,000.00 cash and certain other sums amounting to $81,675.36, which Cinderella promised to pay as rent at stated intervals throughout the term. If and when the payments were all made as promised, the trustee covenanted to convey the property to Cinderella, in consideration of $1.00. Appellees contend that this is a contract of sale; the trustee contends that it is a contract of lease, but that on the issue here, the character of the contract is not material. Although the parties may denominate a paper a lease and the payments thereunder rentals, when the parties treat the payments as constituting the purchase price of the property, as they did in the instant contract, the instrument may be regarded as evidencing a conditional sale. Bankers Pocahontas Coal *158 Co. v. Coal Co.,
The decree of the circuit court is reversed, and such decree as that court should have entered is rendered here.
Reversed and rendered.