123 S.E. 561 | W. Va. | 1924
The crucial question involved in this litigation is whether the real property of a masonic lodge, a part of which is rented for commercial purposes and which produces a substantial income, is subject to taxation.
McDowell Lodge No. 112, A. F. A. M., duly organized and chartered as a masonic lodge under the laws, owns real estate in Welch, McDowell county, consisting of a lot on which it has erected a four-story building and basement, the third and fourth stories of which are used for lodge purposes; the first and second floors rented as offices to various persons, and the cellar leased for a printing office; the annual rentals for basement, first and second floors amount to $3,958.90. The rents are used by the lodge for purposes of its organization, including moneys in excess of $1,000 appropriated by *612 it directly to charitable purposes. The rent received is expended for charitable purposes, the maintenance of the building, and to pay off and discharge a debt on the building, including the interest. A sworn statement found in the record gives the income for the masonic year ending September 30, 1922, as $10,337.12, made up of cash balance on hand, dues and fees collected, rents received from the building (which rents amount to $5,458.90), voluntary donations, and miscellaneous income. Disbursements include local charities, interest on the debt, ($1,106.30), rent, salaries, supplies, funerals, grand lodge dues, for masonic home, janitor, light, heat, water, repairs, miscellaneous expenses for lodge and building, insurance, taxes, and an amount ($2,000) paid on debt. The property was entered on the land books and assessed at $25,000 for the year 1922, the total taxes amounting to $632.75, which were paid under protest by the lodge to the sheriff. Subsequently, in June, 1923, the lodge petitioned the county court for a refund of the taxes paid, claiming that the property was not subject to taxation and was erroneously assessed; the county court granted the prayer of the petition, holding that the property was exempt from taxation, and ordered the sheriff to refund the $632.75 theretofore paid. To this decision of the county court the circuit court awarded a writ of certiorari, on petition of the state, and a hearing was had on October 27, 1923, when relief was denied to the state, the petition for certiorari dismissed and the cause stricken from the docket. The clerk was ordered to certify the disposition of the case to the county court. To this action of the court the state excepted, the proceeding stayed for the purpose of obtaining a writ of error, which writ was granted by this court.
Counsel for the masonic lodge challenges the jurisdiction of this court to entertain this writ of error, claiming that the action of the county and circuit courts was purely administrative and not judicial. To sustain that contention the cases of Railroad Co. v. Board of Pub. Works,
We come to the main question. Is the property of the McDowell Lodge, used in the manner above set out, subject to taxation? Our recent case of Re Masonic Temple Society,
Our statute says property used for charitable purposes, and not held or leased out for profit shall be exempt. The property in question is not used wholly for charitable purposes. The *616
character of use of the property itself determines its exemption from taxation, and not the proceeds from its use. The clause, "not held or leased out for profit," is significant. It is difficult to see how the property of charitable and benevolent associations could be rented except for profit to the association. If rented for profit to its members and not for purposes of the association, it would be difficult to place such association in the class of charitable institutions; unless it could be justified under the familiar saying that "charity begins at home." A reasonable and practicable meaning must be given to the phrase. Our case of State v. Kittle,
The use of the property of the McDowell Lodge determines its status as taxable property, and not the use to which the proceeds are expended when it is held or leased out for profit. The property having been leased out for commercial purposes and for profit, as shown by the agreed facts, is not exempt from taxation under the statute. *617
The judgment of the circuit court and the order of the county court will be reversed, and the prayer of the petition for refund of taxes paid, refused.
Reversed.