The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1896-05-20


Few Days Ago.
The county assessor of this county gets
more legal opinions these days than any
one. AS d Sequence, the county attorney S
office is writing more opinions than all
the lawyers OF the city put together.
1t will be remembered that a few days
ago the assessor asked the county attor-
ney for an opinion in the matter OF the
funds held by Tie hospital fund OF the
Rio Grande Western RaiiwaJ company
employees, and The reply was thae ali
sucn funus must be taxed. Tnis means
a great deal, as what applies TO one M
stltuuon applies TO all ankle.
Now comes the county attorney again
with another Opinion CT equal import In
which he holds that charitable Instltu-
tons are entitled 10 exemptions on prop
erty, only when the same is USED Eek
cluslvely for charitable purposes. In
other words, the buildings belonging to a
Charitable hospital are exempt, when the
same are used Tor charity hospitals II
there are structures belonging 10 The in
Stitutlon which are not USED Tor the Spe-
cine purpose menuoned il they are he'd
as an investment, even though the
revenue derived therefrom is devoted to
keeping the hospital going, they are liable
10 d tax
The opinion is a very plain one and
states the grounds taken by the county
counsellor very emphaticaily. 1t is as toi-
lows.
William ]. Lynch, Esq, Assessor of Salt
Lake County, Utah:
Dear Sir.-N have before us your COM
munication of recent date requesting an
opinion from us as to what construction
should be placed upon that part of sec
ton 8, article IL, of the state constitu-
ton providing, among other specined
buildings thereon used exclusively for
charitable purposes shall be exempt from
taxation, and also upon section of
the revenue law OF 1896, which exempts
from taxation the same class OF property
in the same language After a careful
examination OF The statutes and consti-
tuition OF other states eXempting property
from taxation and of the decisions of the
various states constituting the same, we
beg to advise you that the following prin-
ciples are almost universally laid down:
t1rst-It is customary to exempt from
taxation the property or charitable organi-
cations and associations in so far as it
is made use of for charitable purposes
This is done upon the ground that they
perform service for the public and, to a
certain extent at least, relieve the state
from expense.
Second-Where such exemptions are
made the statutes creating the same are
to be strictly construed; the intention to
grant immunity must be clear and cannot
ambiguous terms, and the state must be
given the benefit of every reasonable
doubt arising as to the legislative inten-
ton. The burden of proof is upon the
party claiming the exemption TO show
that his or its particular case falls clearly
within the exception to the general law.
Third-A statute exemptIng property
generally from taxation cannot be con-
strued to also exempt said property from
special assessments for local improve
ments, such as paving or repair of streets
laying of sewer, etc, unless such statute
specially and in explicit terms covers
such assessments
Fourth-The words used exclusively for
charitable purposes" cannot be held to
include any property that is not actually
III use for the purpose of the charity and
used only for such purpose. If part of
certain property is used for the purpose
of a charity and another part occupied for
other purposes from which an income is
derived for the use of the CHARITY only the
part that is used exclusively for the pur-
poses of the charity is exempt, and the
able and the valuation of the taxable
part of said property should be estimated
by deducting from the total valuation of
the property the value of the specific part
used exclusively for the purposes of
charity. 'e
Fifth-The words Charitable purposes"
as used in the statute, mean just what
they say and include all institutions,
>
which are maintained by funds provided
by the gift or bounty of the state or any
municipal corporation, or by the gifts or
devses Of any private individual or in
dividuals, including private corporations,
and that do not depend altogether upon
fees or assessments for their support and
the benefits of which are not confined to
any privileged individuals but are open
to the indefinite public. In other words,
the two tests of a charitable organization
and purpose are, first, that their support
is derived from gift or bounty of some
character, and second, that. their bene-
fits are open to be received by the public
generally or by such of the public as
fall within the general classes of the
community for whose aid and help the
institution is maintained.
SiXth-Property leased by a charitable
organization from others for the use of
such charitable organization does not
thereby become exempt from taxation I'M
der the statute, even where the lease pro-
videS for the payment of taxes by the
charitable organization.
Seventh-An institution conducted for
the private gain or profit of its promoters,
or the private advantage of its members,
IS not charitable organization as de-
fined by law, although its objects and
purposes may be beneficial and of adj
vantage to the community at large.
Eighth-An exemption from taxation is
special favor conferred by the consti-
tuition or the legislature, and the party
claiming it must bring his case rnmis-
takably within the spirit and intent of
the act creating the exemption.
Viewing the question before us in the
light of the principles above laid down,
it is evident that the case of each organi-
cation or institution claiming to be ex-
enpt under our state constitution and
revenue act above referred to, must stand
alone and must be decided upon the facts
in each special case. 1t is the duty of
such organization or institution to pre-
sent to you such facts and show such a
condition of their affairs as shall put
them clearly within the class declared TO
be exempt from taxation, and whether or
not any certain organization or institu-
ton is charitable organization depends
upon the facts in each case. The fact
having been established that any organi-
zation in legal contemplation, then and in
that case any and all lots with the build
ings thereon that are used exclusively for
the carrying out of their charitable pur-
poses and not wholly or in part for other
purposes, are exempt from taxation under
the constitution of the state and the
revenue law of 1896, and should be SO re-
garded by you. Very respectfully yours,
c. Q. WHITTEMORE.