Source: https://case-law.vlex.com/vid/whitelick-indiana-aerie-3702-692745113
Timestamp: 2019-04-20 13:17:46+00:00

Document:
Opinion Judge: MARK E. GIAQUINTA, SPECIAL JUDGE INDIANA TAX COURT.
Party Name: WHITELICK INDIANA AERIE 3702 FRATERNAL ORDER OF EAGLES, INC. Petitioner, v. HENDRICKS COUNTY PROPERTY TAX ASSESSMENT BOARD OF APPEALS AND HENDRICKS COUNTY ASSESSOR, Respondent.
HENDRICKS COUNTY PROPERTY TAX ASSESSMENT BOARD OF APPEALS AND HENDRICKS COUNTY ASSESSOR, Respondent.
MARK E. GIAQUINTA, SPECIAL JUDGE INDIANA TAX COURT.
This case concerns whether the Indiana Board of Tax Review (the "Indiana Board") Conclusions determining that Whitelick Indiana Aerie 3207 Fraternal Order of Eagles, Inc. ("Aerie 3207") was not entitled to a property tax exemption under either Indiana Code § 6-1.1-10-23 or Indiana Code § 6-1.1-10-16 were not in accordance with law. The court affirms.
Aerie 3207 is a local chapter instituted by the authority of the Grand Aerie of the Fraternal Order of Eagles. The Grand Aerie is the supreme governing body. Local Aerie chapters are part of individual Districts and Zones within each state Aerie. These state Aeries are part of Regions. Aerie 3207 uses the term "Grand Aerie" to refer to what appear to be two separate things: (1) the society itself (the Fraternal Order of Eagles), and (2) its supreme governing body (the Grand Aerie). The society's constitution requires local aeries to adopt by-laws that the Grand Aerie must approve.
During the 2013 and 2014 tax years, Aerie 3207 owned two parcels located at 5556 East U.S. Highway 40, Plainfield. The larger parcel is a 4.4-acre tract with a 7, 560-square-foot lodge, a surface parking lot, a shelter house, horseshoe pits, and a playground. Members gather at the property to socialize. The lodge is comprised of three main sections: (1) a social room with a restaurant and bar used exclusively by members, (2) a banquet hall, and (3) offices, meeting rooms and restrooms. Each of these sections accounts for approximately 33% of the total building. And, the lodge contains personal property used for the organization's activities such as kitchen equipment, table, chairs, dish and glassware and office supplies.
Members of the local pay annual membership dues of up to $30 per year. Aerie 3207's bylaws provide for a funeral benefit ranging from $150 (if a member dies in his first year of membership) to $300 (if he dies in the tenth year of membership or after). To qualify for the funeral benefit, the member must have been initiated into Aerie 3207 before his 55th birthday and be current with membership dues at the time of death. Aerie 3207 pays funeral benefits out of its benefit fund; no funds come from the society.
Aerie 3207 filed Applications for Property Tax Exemption with the Hendricks County Property Tax Assessment Board of Appeals (PTABOA) requesting either a fraternal benefit association exemption or a charitable purposes exemption for the 2013 and 2014 tax years on its real and personal property. The PTABOA denied those exemption applications on August 29, 2013, and July 7, 2014, respectively.
Ind. Code §§ 33-26-6-6(e)(1)-(5) (2014). See, Fraternal Order of Eagles # 3988, Inc. v. Morgan Cnty. Property Tax Assessment Bd. of Appeals, 5 N.E.3d 1195, 1198 (Tax Ct. 2014). Aerie 3207 contends that the Board's conclusions that Aerie 3207 neither established itself as a fraternal benefit association under Indiana Code § 27-11-1-1 nor that it met the charitable exemption requirements under Indiana Code § 6-1.1-10-16(a) were not in accordance with law.
Aerie 3207's first claim addresses the Board's conclusion that it was required to provide an insurance "Benefit Contract, " including the issuance of certificates of insurance, to qualify as a fraternal benefit association for tax exempt status under Indiana Code § 6-1.1-10-23.

References: v. 
 § 6
 § 6
 v. 
 § 27
 § 6
 § 6