Case Title: Assembly Homes, Inc. v. Yellow Medicine County

Citation: 140 N.W.2d 336

Docket Number: 

State: minnesota

Court: Minnesota Supreme Court

Date: 1966-02-11T00:00:00Z

Document:
140 N.W.2d 336 (1966) In re Validity of claim of ASSEMBLY HOMES, INC. that certain real estate is exempt from taxes due in 1964, Appellant, v. YELLOW MEDICINE COUNTY, Respondent. No. 39754. Supreme Court of Minnesota. February 11, 1966. *337 Norvell C. Callaghan, Glenwood, for appellant. H. C. Lee, County Atty., Granite Falls, for respondent. Briggs & Morgan, John M. Sullivan, Cole Oehler and J. Neil Morton, St. Paul, amici curiae. THOMAS GALLAGHER, Justice. Petitioner, Assembly Homes, Inc., a nonprofit Minnesota corporation organized pursuant to L.1951, c. 550, Minn.St. c. 317,[1] affiliated with the Minnesota District Council of the Assemblies of God Church, a religious association, instituted these proceedings under Minn.St. 278.01[2] in the District Court of Yellow Medicine County. Therein it seeks judgment that under § 272.02(3), (6)[3] certain real estate in Clarkfield, Yellow Medicine County, upon which it maintains a nursing home, is exempt from real estate taxes for the year 1963 in the sum of $3,076.64 as an institution of "purely public charity." No issue was presented as to whether this nursing home during the *338 year in question was a public hospital also exempt under this statute, and this is not before us. Petitioner's articles of incorporation provide as follows: Based upon evidence submitted at the hearing, the court found as follows: Based upon such findings, the court determined that the real estate in question was not used as an institution of "purely public charity" and that, accordingly, the property was not exempt from taxation. In a memorandum made a part of the findings, the trial court stated: Petitioner appeals from a denial of its motion for amended findings or a new trial. 1. In construing Minn.Const. art. 9, § 1, and Minn.St. 272.02(6), which exempt from taxation institutions of "purely public charity," we have held that "an institution organized for the purpose of rendering aid, comfort, and assistance to the indigent and defective, open to the public generally, conducted without a view to profit, and supported and maintained [in part] by benevolent contributions" falls within the category intended by such sections. State v. Bishop Seabury Mission, 90 Minn. 92, 95, 95 N.W. 882. Thus, in Christian Business Men's Committee of Minneapolis, Inc. v. State, 228 Minn. 549, 555, 38 N.W.2d 803, 809, the words "purely public charity" were referred to as follows: Again, in County of Hennepin v. Brotherhood of Church of Gethsemane, 27 Minn. 460, 8 N.W. 595, where the term "public hospital" was involved, this court held a public hospital exempt from taxation because in addition to being a public hospital it was held to be an institution of "purely public charity." Therein it was said (27 Minn. 462, 8 N.W. 596): 2. Nor does the fact that an organization claiming exemption as one of "purely public charity" operates at a profit derived from charges made to its patients nullify its status as an institution of "purely public charity" if under its charter its operations are intended for the benefit of the public generally and thereunder none of such profits can be paid to stockholders or others. Thus, in State v. Browning, 192 Minn. 25, 29, 255 N.W. 254, 256, the rule as applied to public hospitals was expressed as follows: See, also, County of Hennepin v. Brotherhood of Church of Gethsemane, supra; Village of Hibbing v. Commissioner of Taxation, 217 Minn. 528, 14 N.W.2d 923, 156 A. L.R. 1294; Fairmont Community Hospital Ass'n. Inc. v. State, 221 Minn. 107, 21 N.W.2d 243. 3. When the foregoing principles are applied to the undisputed facts here, it seems clear that the Clarkfield Nursing Home falls within the definition of institutions of "purely public charity." Its charter, its bylaws, its policy, and the conduct of its operations established that it was not organized for private profit. It is open to the public and any profits derived from its operations go to the furtherance of its work as a nursing home. Its shareholders cannot receive dividends and hold stock for life and at the death of a shareholder his stock reverts to the corporation. Its charges for services are paid for by individual patients, by county welfare boards, and by the U. S. Veterans Administration. Private donations of money or services also contribute to its maintenance. When all such factors are taken into consideration, it would seem clear that the Clarkfield Nursing Home was exempt from taxation during the year 1963 as an institution of "purely public charity." Reversed with directions to enter judgment for petitioner. Mr. Justice OTIS took no part in the consideration or decision of this case. [1] Minn.St. 317.08, subd. 1, provides: "The articles shall be expressed in the English language, signed by each of the incorporators, and acknowledged by at least three of them." Minn.St. 317.08, subd. 2, provides in part: "The articles of a corporation organized under this chapter shall state: * * * * * "(3) that the corporation does not afford pecuniary gain, incidentally or otherwise, to its members." Minn.St. 317.16, subd. 2, provides in part: "Without limiting or enlarging the provisions of subdivision 1, and unless the articles prescribe otherwise, a corporation has authority to: * * * * * "(5) lease, encumber, convey or dispose of real and personal property * * *." [2] Minn.St. 278.01 provides: "Any person having any estate, right, title, or interest in or lien upon any parcel of land, who claims * * * that the tax levied against the same is illegal * * * or that the property is exempt from the tax so levied, may have the validity of his claim, defense, or objection determined by the district court of the county in which the tax is levied * * *." [3] Minn.St. 272.02 provides in part: "All property described in this section to the extent herein limited shall be exempt from taxation: * * * * * "(3) All public hospitals; * * * * * "(6) Institutions of purely public charity."