24 Pa. Commw. 461 | Pa. Commw. Ct. | 1976
Opinion by
At issue in this case is the entitlement of appellee, Presbyterian-University of Pennsylvania Medical Center (Hospital), to an exemption from real property taxes for the year 1974, on a 2.34 acre tract of land adjacent to the hospital’s main facility. The appellant here, the Board of Revision of Taxes of Philadelphia (Board), denied the hospital’s claim to an exemption. On appeal, the Court of Common Pleas of Philadelphia County reversed the Board by an order dated December 26, 1974. The Board filed eleven exceptions to the order of the court below which were dismissed on May 30, 1975. Three of those exceptions were preserved on appeal to this court.
Two of the Board’s exceptions deal directly with the exemption issue. We begin our analysis by noting that
“(a) The following property shall be exempt from all county, city, borough, town, township, road, poor and school tax, to wit:
“(3) All hospitals, universities, colleges, seminaries, academies, associations and institutions of learning, benevolence or charity, including fire and rescue stations, with the grounds thereto annexed and necessary for the occupancy and enjoyment of the same, founded, endowed and maintained by public or private charity: Provided, That the entire revenue derived by the same be applied to the support and to increase the efficiency and facilities thereof, the repair and the necessary increase of grounds and buildings thereof, and for no other purpose;”
This statute carries out the power granted in Article VIII, Section 2(a) (v) of the Pennsylvania Constitution.
“(a) The General Assembly may by law exempt from taxation:
“ (v) Institutions of purely public charity, but in the case of any real property tax exemptions only that portion of real property of such institution which is actually and regularly used for the purposes of the institution.”
It was admitted by the Board that the hospital was founded, endowed and maintained by a charity. Therefore the question remaining before us is whether the grounds in question are “necessary for the occupancy and enjoyment” of the hospital.
In order to qualify for any tax exemption, a claimant bears the burden of bringing itself within the ambit of the exemption. Four Freedoms House of Philadelphia, Inc. v. City of Philadelphia, 443 Pa. 215, 279 A. 2d 155 (1971). The burden remains the same for those claiming an exemption under Section 204. University of Pittsburgh Tax Exemption Case, 407 Pa. 416, 180 A. 2d 760 (1962). Section 204 requires that property, to be exempt, must be “necessary for the occupancy and enjoyment” of the charitable use. Absolute necessity, however, need not be shown. Evidence establishing a reasonable necessity is sufficient to carry claimant’s burden. Allegheny General Hospital v. Board of Property Assessment Appeals and Review, Allegheny County, 207 Pa. Superior Ct. 266, 217 A. 2d 796 (1966).
The evidence in the instant case establishes that the existence of the apartment building in close proximity to
The portion of the property which contains a single tennis court and is landscaped to provide a “recreational area” poses a more difficult question, however. It has generally been held that the question of whether grounds are “necessary for the occupancy and enjoyment” of a charitable institution is one primarily for its governing board. Christian Literature Crusade, Inc. v. Board for the Assessment and Revision of Taxes of Montgomery County, 17 Pa. Commonwealth Ct. 63, 328 A. 2d 896 (1974), Shadyside Hospital Appeal, supra. The courts will not, however, give unlimited deference to the charitable body’s characterization. We must also be mindful that the city and its taxpayers have an interest in safeguarding the city’s shrinking tax base. Only where land owned by a hospital contributes in a reasonable manner to its function as a hospital, is the exemption justified. Thus parking facilities connected to a hospital and restricted to use by hospital personnel and patients, in an area where parking is scarce, have been exempted. See
In the case at bar, testimony established that the vacant land between the hospital and the apartment building was reasonably necessary for security purposes. The land was cleared of obstructions and lighted. Security guards escorted foreign exchange nurses through this area at night. Since the area in which the hospital is located is perceived as a “high crime area,” it was deemed necessary by the hospital to secure the land between the apartment and the hospital. This is undoubtedly a close case, however, in light of the factual situation revealed in the record, we are of the view that the trial court did not err in finding the landscaped area exempt from real estate taxes.
The final issue preserved on appeal concerns the failure of the trial judge to recuse himself at the request of the Board. No cogent reasons are advanced why the judge should have excused himself, thus we find the Board’s third contention to be without merit.
Order affirmed.