Opinion ID: 1268867
Heading Depth: 3
Heading Rank: 5

Heading: Thrift Shop

Text: The Methodists were denied an exemption for a Thrift Shop that they operated in part of the Community United Methodist Church Building (tax years 1979-82). The superior court reversed the exemption denial, and remanded for apportionment. The Thrift Shop distributes used clothing. The apparently slight income buys presents for prisoners, supports donations for mission projects and helps pay for the church's utilities. We agree with the superior court that provision of used clothing at prices affordable to the poor is a charitable activity under King's Lake Camp. The superior court concluded that the shop's income did not taint its exemption. The court ruled that it was not the product of a dominant profit motive, and that the use of the income was incidental to and reasonably necessary for the accomplishment of the shop's charitable purposes. The small income was used for charitable projects and to help defray the church's utility costs. The superior court stated that rare is the church that doesn't have some charitable activity to help needy people obtain food, clothing and shelter attended by rummage and bake sales, church bazaars and even bingo. We disagree in part with the superior court's analysis. If the Thrift Shop raised money that was unnecessary to either the shop's operation or use by its other charitable activities, then the Thrift Shop would not be exempt under AS 29.53.020(c) even though it is otherwise a charitable activity. King's Lake Camp, 439 P.2d at 445; Evangelical Covenant Church, 394 P.2d at 885. The superior court did not determine this point. We thus affirm the superior court's decision to remand the Thrift Shop decision. But before apportioning, the City should determine whether the Thrift Shop is exempt under this opinion.