Opinion ID: 2337982
Heading Depth: 1
Heading Rank: 3

Heading: Is Bowling Association Entitled to Tax Exempt Status?

Text: Tax exemptions should be founded on a rational basis and rest on sound public policy. State ex rel. Transp. Mfg. & Equip. Co. v. Bates, 359 Mo. 1002, 224 S.W.2d 996, 1000 (1949). Exemptions must be founded upon a reason public in nature and must be strictly construed and generally are sustained only upon the grounds of public policy. Id. They should serve a public, as distinguished from a private, interest. Id. Taxpayers carry the burden of showing they are entitled to an exemption under the statutes. Branson Props. USA, L.P. v. Dir. of Revenue, 110 S.W.3d 824, 825 (Mo. banc 2003). Exemptions from taxation are to be strictly construed against the taxpayer, and any doubt is resolved in favor of application of the tax. Id. Section 144.030.2(20) provides an exemption for all sales made by or to not-for-profit civic, social, service or fraternal organizations . . . in their civic or charitable functions and activities. . . . Words and phrases in statutes are to be given their plain and ordinary meaning, which can be typically derived from the dictionary. Section 1.090, RSMo 2000; Indian Lake Prop. Owners Ass'n, Inc. v. Dir. of Revenue, 813 S.W.2d 305, 308 (Mo. banc 1991). This Court previously defined civic as used in section 144.030.2(20) using its dictionary definition: Forming a component of or connected with the functioning, integration, and development of a civilized community (as a town or city) involving the common public activities and interests of the body of citizens . . . concerned with or contributory to general welfare and the betterment of life for the citizenry of a community or enhancement of its facilities; esp: devoted to improving health, education, safety, recreation, and morale of the general public through nonpolitical means[.] Indian Lake, 813 S.W.2d at 308 (internal citations omitted; bold emphasis added). Indian Lake added: For an organization to be civic in nature, its purposes and functions must be concerned with and relate to the citizenry at large. The organization must benefit the community it serves on an unrestricted basis. Id. In Indian Lake , this Court rejected a claim by a homeowners' association that it was a civic organization entitled to tax exempt status because the association had done everything within its power to create a private environment and to exclude nonmembers from any benefits. . . . [and the benefits it accrued] to the general public [were] at best incidental and peripheral to the members' private interests. Id. Bowling Association, unlike the homeowners' association in Indian Lake, is not restrictive in its membership, as its membership is available to any person. Additionally, while Bowling Association's activities are enjoyed largely by its current members, its purposes include fostering increased opportunities for all people to participate in recreational bowling activities. Bowling Association's activities, which are recreational and available to the public at large, bring it under the definition of civic outlined in Indian Lake . As such, Bowling Association qualifies for tax exempt status as a civic organization under section 144.030.2(20). [5]