Opinion ID: 1268867
Heading Depth: 2
Heading Rank: 6

Heading: church sanctuaries, religious administrative offices and religious education

Text: The City denied exemptions for both the Our Savior's Lutheran Church building (tax years 1979-82) and the Community United Methodist Church building (tax years 1979-82). The superior court found that the City apparently believed that several uses within the buildings were not exempt and that spatial apportionment was not allowed. As a result of these misconceptions, the City would have wrongfully denied exemptions for any religious sanctuaries, religious administrative offices, and rooms for religious education contained within those buildings; these uses are all exempt under AS 29.53.020(b)(2). [34] The superior court thus reversed these determinations and ordered the City to apportion the space within the buildings according to exempt and nonexempt uses. The City argues that even with apportionment, no space within these buildings is exempt because the churches have not met their burden of showing that any space was used exclusively for exempt purposes. The City claims that the superior court erroneously presumed that such spaces existed and improperly remanded for apportionment. We agree with the superior court's judgment. Since the determination and apportionment of exempt and nonexempt uses was not made previously, it remains an issue for remand. The churches bear the burden of proving entitlement for exemption. If no space was used exclusively as a sanctuary, religious administrative office, or room for religious education, then the City may properly deny the exemptions.