*1 Richmond Washington College Corporation. County, v. Sullins

March Record No. 7276 Present, All the Justices. Roberts

Bradley D. (David Commonwealth’s Brown, Attorney for on Washington brief), for County, error. plaintiff M. G. George Warren, Jr.; R. C. Stuart (James P. Warren Jones; & Stuart Bowie; Penn, & brief), Eskridge, defendant error.

F Anson, delivered J., of the court. opinion On December hereinafter College Corporation, referred to as the filed an to Code college, application pursuant for relief from erroneous real estate tax assessments against property by Washington County on the it was from ground § 183(d) taxation 58-12(4). assessmentswere errone- filed answer denying continued. and the matter was ous and that the exempt, On filed a to amend its orig- September petition *2 inal for the to include relief from payment request application 1968. taxes on the for of 1961 the additional through years property then filed to the amendment and the county college objected second the on December reiterating allegations application for first, taxes and relief from the levied expressly requesting the 1966, and 1968. years were for trial October consolidated beginning applications the

28, held that 1969. After ore tenus the trial court hearing the taxation, from denied college’s petition exempt the relieved from it be amend its asking application original 1965, (1) ordered and assessments for through years for of the taxes be exonerated payment college treasurer 1968; 1958, 1966, (2) and 1959, county $1,436.89, that amount the sum of refund being college taxes assessed against prop- protest paid costs; (3) interest including penalties, erty taxes assessed that the against pay with interests and costs. vears together penalties, through a writ error to We county judgment, granted cross-error. has assigned whether the college’s Camp Sequoya presented questions taxes under the from real estate provision exempt Code of the Constitution 183(d) taxes, whether the from and, if the 58-14; exempt an amendment to erred in not trial court original appli- allowing include relief cation to as follows:

Section 183 part, provides, taxation.—Unless otherwise exempt “Property -from be shall and no other Constitution, this following property local, taxes: taxation, inheritance State from including 42- *4¿ *Jp w “Jr libraries, owned “(d) colleges by public incorporated Property institutions of not conducted or other learning, marily ^[**] *. But this thereto. provision ^[*] * # scientific, or shall apply only pur pri js. TP ji. TV 41. TV *45. TV mentioned in “Whenever building any State, be leased or section, this shall shall not belonging otherwise be a source of revenue or all of such and land to taxation other land shall be liable # # the same county reads amended, real and “What State taxation, p'operty, personal, exempt from taxation, local—The shall following property State and local, inheritance taxes: including ^ TP ^ “(4) or other Property incorporated colleges * # # institutions conducted for * # #. (But provision apply property primarily *3 used for or scientific educational in or thereto.) cidental in 58-14 provides, token is source “Exemptions applicable revenue. building —Whenever or mentioned in any building § 58-12, State, shall leased or shall belonging otherwise be source of revenue or all of such buildings land be liable to taxation other land and #* * as now same hereafter be may county except ” lawby Bristol, located in was established in Virginia, non-stock, It an accredited two- incorporated, non-profit, institution for women. year an

In 1920 the constructed lake on artificial land college adjoining and built a next to the lake the students lodge campus, The facilities were 1925 when the enlarged college. college a summer which it Se- girls operated began program Camp of the lake taken When portion quoya. highway purposes became undesirable for in 1957 the location use. camp was moved to a site in the In 1958 on South Hol camp miles from the Dam, Bristol, fourteen after ston the col campus -acre tract it of land 45-acre tract l/z lege adjoining acquired tract, A cabin was situated on the had owned since 1953. 9^-acre edu students of the used the physical college constructed a number cation and recreational The programs. college tract and and recreation areas on the combined of buildings 54%-acre $600,000. has a investment capital approximately The conducts two five-week sessions during camp It has enrollment months from 8 to 17 age. girls net income of 250 for each session. The average operating capacity ten 1968 was for the approximately camp re- $48,300 amount, which made no allowance for each This year. went into general operating pairs depreciation, account of the college. horseback includes sailing, riding, program swimming,

tennis, drama, drawing, archery, riflery, golf, painting, composition, music ballet and literature. A design, library pro- appreciation, vided and reading required. business testified that much of the manager for the summer at the moveable is used

college’s equipment camp. use the as a meet- and student leaders camp property orientation week. The college’s testing

ing place plan at the for new students of each school orientation beginning programs uses the facilities are held there. The throughout year classes, for art and science dances and mixers school regular week-end for student students, and Alumni meetings groups. recruiters’ activities and also held meetings meetings there. Martin, testified that the Dr. William T. college, president with its instruction in literature and the fine arts, program, camp’s the usual summer and is in far offerings camp, goes beyond *4 of the mem- furtherance purposes college. Many and staff are summer of bers provided college’s employ- to since is which of does not ment, great importance is a valuable school. asset to the a summer col- operate recruiting program. lege’s Ashmore, of L. State

Dr. president Armstrong Henry committee of the visitation the Southern of Associa- chairman that made an and Schools evaluation of the tion Colleges re-accreditation He purposes program instruction in that testified providing camp’s program, physical

595 is literature, educational; music and that it education, art, typical schools and found in colleges; elementary secondary programs the educa- is an and that the summer adjunct important program tional college. purposes not an argues incorporated conducted or other institution of learning the mean- not educational within camp program § of the Constitution 183(d)

ing applicable provisions so 58-14, qualify tax status. exemption with Commonwealth v. Y.M.C.A., 115 Lynchburg

Beginning 745, 747-48, Va. L.R.A.(N.S.) (1914), 80 S.E. 50 1197 we have such a liberal applied exemption provisions. interpretation Richmond v. Nursery See 207 151 Day Ass’n, cases S.E.2d numerous there (1966), cited. § 183(d)

Section 58-12(4) of the Code state that or other clearly by incorporated colleges institutions of not conducted for learning taxation, from State scientific or educational purposes pur- incidental thereto. In Richmond v. Day Nursery Ass’n, non-stock, supra, non-profit for children from to3 corporation operated day nursery on its A trained staff conducted a which age property. included musical rhymes, arts and crafts, nursery story telling, games, rest, and The children health were also numbers inspection. taught and the of the week. We held was an incor- days nursery institution of conducted for porated profit; was used property incidental thereto within the intent of 183(d) the Constitution and that as such 58-12(4); and Code

taxation. County In Hanover v. 203 Va. Trustees, # # # the use we said that “if has direct

reference institution was created, and tends those it is directly then immediately promote within the of the Constitution, revenue exemption provisions although as an is derived therefrom incident to its use Citing v. Commonwealth Hampton Institute, 614, 56 S.E. v. (1907); Commonwealth Y.M.C.A., Lynchburg supra, Va. at *5 596

752, Smallwood Memorial Insti- 80 S.E. Commonwealth v. 591; at (1919). 97 S.E. tute, In the case the uncontradicted evidence shows present is owned an educational in- by Camp Sequoya property stitution not conducted for has Since 1958

profit. camp property been used for educational pur- by college primarily at the conducted incidental thereto. The schools, those found in schools elementary high camp and typical use of the tends colleges. directly promote in that it is an aid in recruitment of stu- staff, of its dents and in the addi- retention provides of its facilities for the tional implementation program. an is owned institution of

Since by and the conducted thereto, the revenue use and its is incidental such does not derived from its tax status under the provisions deprive 58-12 and Thus we Code 58-14. 183 of from that the taxation. hold contends that the trial court In cross-error amend erred original application denying petition taxes levied to obtain relief order years through We do not agree. provides, * * * with levies or other assessed “Any person estate, assessment, such unless taxes real on any may, aggrieved by law, within two otherwise specifically December such assess- any thirty-first day * for relief to the circuit made court where- ment is apply * * *” was made. in such assessment is based statute and is thus solely college's remedy did not file an Since limited application thereby. 1965 within relief two-year statutory was without consider its the court jurisdiction request period, relief Town Lees application. original amendment B’k, Nat. 126 S.E. v. Loudoun burg (1925). stated, the the court below is the reasons

For judgment

Affirmed. Gordon, J., dissenting. is the counsel for suggest, Camp Sequoya

Perhaps, College *6 sail- finest It teach in area. may swimming, preeminently tennis, drama, horseback ing, drawing, riding, archery, riflery, golf, ballet and litera- music painting, composition, design, ture. appreciation, after an- all But the record that shows just Camp Sequoya other dedicated summer hundreds other summer like of camps camp, to for owners. recreation profit campers believe, clear,

The record makes I invested why College sums for a summer substantial land, camp. buildings equipment sound business has been proved by College’s judgment $483,000 of net income College produced by Camp Sequoya 1959-1968—about net income during period College’s 24% that during period.1 students and alumni the bucolic

Understandably, faculty, dances and mixers the academic Camp property meetings, during But those activities incidental to use of year. the quite primary a As witness for out Camp property. brought College, time, vacant most in the summer. of Camp property except And it during precollege-age girls. is not

Accordingly, my opinion, Camp property of from taxation the Constitution of Virginia. Paragraph (d) used for scientific or only “primarily exempts or thereto”. Because the purposes is used as a recreational summer Camp property camp, I for educational believe the incidentally only excluded from afforded (d).2 expressly exemption paragraph But even the were used if Camp property education, or incident to its cannot be that states to have majority opinion repairs not depreciation However, been deducted from net income. counsel for asserted Washington County brief, counsel for the their did College deny, during ten-year $145,000 period the received an College additional operation the Camp because certain general were expenses College charged Camp. who An academic as an testified witness for the expert College expressed society “any would assist child find opinion experience his niche in and to become a useful member of is in effect society educational”. In his view “horseback “water riding”, skiing”, in a merely “being together is edu group” cational. course would an educational qualify institution under all definition. To encompassing his expert’s definition as the adopt Constitutional “educational”, which I unwarranted, believe meaning would vitiate the restric (d). tions set forth in paragraph from taxation because 183: provision subsequent be

“Whenever . . . leased any building or shall of such build- otherwise of revenue all source or profit, land shall be to taxation as other land liable ings in the same shows record or town.”

county, city intended, was but also that has been realized abundantly operation Camp Sequoya. v. Trustees Our in Hanover County Randolph-Macon holdings Richmond v. (1962), Southside 151 S.E.2d 370 Assn, 207 Bay Nursery case do not control this involved land case. The Randolph-Macon be made available housing. bought by about the lack The evidence showed that the concerned belief of available land housing faculty and'bought retained, “that if members were to be obtained capable faculty which was the functions for and if the perform extend its to have established, it was land avail- necessary *7 campus construct their which the members of could able upon We held the 203 Va. at at 815. own homes”. prop- § because it under the Constitution acquired erty exempt educational even and held by college primarily been realized a had $915 by incidentally though members. the sale of lots to faculty upon case involved Southside Bay Nursery The by as a for children and used nursery working corporation non-profit Southside em- evidence showed The Nursery Day parents. children, four an executive director supervisors ployed the field of childhood education”. 207 trained in “all college witness, “Southside 564, 151 S.E.2d at 373. at According centers interested in is a ‘model establishing [nursery] persons observe equipment, phyiscal plant, program, is so environment that training general important young further stated “that Southside ”. Id. This witness child’ fine has educational ‘very organization’ ‘babysitting to the Id. no evidence ”. contrary. City produced program’ trial court’s Southside’s We finding upheld and therefore the Constitution. cases, Southside Nursery Bay Randolph-Macon though case, and do control ad- quite different are factually they §of construction reflect a Constitution. liberal mittedly But can no as the water they mark. longer regarded Today high the Court not holds that the aof operation education, incident to but it also holds that a summer that contributes about 24% of its owner’s (the net source income is not a of revenue College’s) or profit.

The Court extension declared justifies today’s judicially rule that a liberal construction should be given exemption pro- visions Constitution, a rule announced Commonwealth v. YMCA, 80 S.E. 589 Lyncburg repeated cases later Richmond v. Southside Day Nursery Assn, including That rule was considered and supra. however, the Com- rejected, mission on Constitutional Revision. Commission on Constitutional Revision, Report: 306 (1969). Virginia Rather than decisions, I believe we should heed the extending past will of the recommendation, the Commission’s people. Following ,Constitution §10, their will in 6(f), Article they expressed effective 1971: from tax- July “Exemptions ation established or authorized shall be construed.” hereby strictly we at should least refrain from further our con- Believing struction of liberalizing 183 of the Constitution, I would deny present exemp- tion to the Camp property.