Opinion ID: 1268867
Heading Depth: 3
Heading Rank: 4

Heading: Youth Hostel

Text: The Methodists operated a Youth Hostel in various parts of the Community United Methodist Church Building. The space used depended upon current need. Affiliated with the American Youth Hostels, this Youth Hostel provided low-cost housing for transients, visitors to Nome traveling cheaply and others who were neither needy nor traveling cheaply. It received donations ranging from $2.50 to $5.00 per night, although no one was turned away if fees were not paid. The church operated the Youth Hostel for charitable purposes and made no profit. We agree with the superior court that the Youth Hostel was a charitable activity. The Youth Hostel closely parallels the camp operated for charitable purposes in King's Lake Camp. The Youth Hostel provides travelers temporary lodging for a low daily fee. Although some who stay at the Hostel are not needy and could pay more, no one is turned away if the fees are not paid. In this sense, the Youth Hostel is a gift to the general public. The income from the Youth Hostel does not taint the hostel's exempt status. The fees were received as payment for the exempt hostel services, were related to and necessary for the hostel's operation, did not exceed the hostel's operating costs, and were not motivated by profit making. Thus, the income limitations of AS 29.53.020(c) do not apply. The superior court determined that the Youth Hostel was exempt for tax years 1979-82. It remanded the decision for apportionment. We uphold the superior court's judgment.