358 Mass. 111 | Mass. | 1970
This bill for a declaratory decree was reserved and reported without decision by a single justice. Before us are the pleadings and a statement of agreed facts constituting a case stated.
The plaintiff, the Supreme Council of the Royal Arcanum (Royal Arcanum), is a fraternal benefit society as defined in and governed by the provisions of G. L. c. 176, as appearing in St. 1958, c. 540, § 1. It maintains an office in Boston for the conduct of its affairs. By application dated August 17, 1966, Royal Arcanum requested the Department of Cor
We think that Royal Arcanum’s contentions cannot prevail. In First Agricultural Natl. Bank v. State Tax Commn. 353 Mass. 172, revd. 392 U. S. 339, we had occasion to construe certain provisions of the temporary sales and use taxes imposed by St. 1966, c. 14. The relevant provisions of those tax statutes now appear in substantially the same form in G. L. cc. 64H and 641, inserted by St. 1967, c. 757, §§ 1 and 2. In the First Agricultural case, we held that, even though the vendor had the right under St. 1966, c. 14, § 1, subsec. 3 (now in permanent form as G. L. c. 64H, § 3, par. 1), to add the sales tax to the purchase price of the goods, and to enforce the right to reimbursement as a debt,
Royal Arcanum’s contentions based on G. L. c. 176, §§49 and 50, therefore, relate only to the use tax, the incidence of which is clearly upon the purchaser. First Agricultural case at p. 181. Although Royal Arcanum requested a ruling that it is exempt from paying use taxes, it does not appear on this record that Royal Arcanum has been or is about to be assessed any use taxes. Royal Arcanum thus appears to lack the “definite interest” (School Comm. of Cambridge v. Superintendent of Schs. of Cambridge, 320 Mass. 516, 518) requisite to establish an “actual controversy” on this issue. See G. L. c. 231A, § 1. Consequently, it is not necessary to our decision for us to discuss Royal Arcanum’s contentions that it is exempt from the use tax by virtue of G. L. c. 176, §§ 49 and 50. Because the parties have argued the merits, however, and more especially because it provides an alternative basis for our decision on the claimed exemption from the sales tax, we discuss Royal Arcanum’s contentions.
General Laws c. 176, § 49 (quoted in fn. 1), exempts the funds of fraternal benefit societies from all taxes “other than taxes on real estate and office equipment.” Section 49 was enacted by St. 1958, c. 540, § 1. The sales and use taxes were enacted on a temporary basis by St. 1966, c. 14, and on a permanent basis by St. 1967, c. 757. “In its enactment
Royal Arcanum argues that § 50 of c. 176
A decree is to be entered declaring that the sales of tangible personal property to the plaintiff, or the storage, use or other consumption of such property by the plaintiff, is not exempt from the taxes imposed by G. L. cc. 64H and 641 by virtue of G. L. c. 176, §§ 49 and 50.
So ordered.
General Laws c. 176, § 49, as appearing in St. 1958, c. 540, § 1, provides: “Every society organized or licensed under this chapter is hereby declared to be a charitable and benevolent institution, and all of its funds shall be exempt from all and every state, county, district, municipal and school tax other than taxes on real estate and office equipment.”
General Laws c. 176, § 50, as amended _ through St. 1963, c. 521, § 2, provides: “Societies shall be governed by this chapter, and shall be exempt from all other provisions of the insurance laws of the commonwealth except . . . [certain designated sections of G. L. c. 175, Insurance], not only m governmental relations with the commonwealth, but for every other purpose; and no law hereafter enacted shall apply to them unless they are expressly designated therein; provided, however, that . . . [certain other sections of c. 175] shall apply to domestic societies.”
Internal Revenue Code of 1954, § 501 (e) (3), exempts: “Corporations, and any community chest, fund, or foundation, organized and operated exclusively for religious, charitable, scientific, testing for public safety, literary, or educational purposes, or for the prevention of cruelty to children or animals, no part of the net earnings of which inures to the benefit of any private shareholder or individual, no substantial part of the activities of which is carrying on propaganda, or otherwise attempting, to influence legislation, and which does not participate in, or intervene in . . . any political campaign on behalf of any candidate for public office.” Compare § 1, subsec. 6 (e) of St. 1966, c. 14, the temporary sales tax, which exempted “Caíales to any corporation, foundation, organization or institution, organized exclusively for religious, scientific, charitable or educational purposes, including hospitals, no part of the net earnings of which inures to the benefit of any private shareholder or individual . . ..”
Internal Revenue Code of 1954, § 501 (c) (8), exempts: “Fraternal beneficiary societies, orders, or associations — (A) operating under the lodge system or for the exclusive benefit of the members of a fraternity itself operating under the lodge system, and (B) providing for the payment of life, sick, accident, or other benefits to the members of such society, order, or association or their dependents.” Compare G. L. c. 176, § 1.
See fn. 2.