Opinion ID: 2833082
Heading Depth: 2
Heading Rank: 2

Heading: Benevolent Association

Text: [¶18] We turn to our next consideration: whether or not Mountain Vista is a benevolent association. The Department of Revenue’s rules define benevolent as follows: “Benevolent” includes purposes which may be deemed charitable, as well as acts dictated by kindness, good will, or a disposition to do good, the objects of which have no relation to the promotion of education, learning, or religion, the relief of the needy, the sick, or the afflicted, the support of public works, or the relief of public burdens. The term has wider significance than “charitable” as a legal tenet but shall be limited to purposes or activities of sufficient public importance and wide-spread social value. 10 Department of Revenue Rules, ch. 14, § 13(a)(iii) (2014). [¶19] The Department of Revenue’s rules preclude application of the benevolent association exemption if the entity uses its property primarily for commercial purposes. Specifically, the rules provide: Housing made available to senior citizens which is not part of a senior citizens’ center (such as a retirement home) is exempt only if the entity owning the property meets the criteria of a “charitable and benevolent society or association” in Section 13 of this Chapter. A retirement home is taxable if the residents provide their own furnishings and are charged for the cost of operating the home, including extra amenities enjoyed by the residents. Such a retirement home constitutes a commercial enterprise, even if operated on a non-profit basis with reduced charges. Department of Revenue Rules, Chapter 14, § 14(a)(ii) (2014) (emphasis added). [¶20] The County Board made no specific findings based upon the definition of a benevolent association and instead upheld the county assessor’s determination based upon the assessor’s conclusion that Mountain Vista’s property was primarily used for commercial purposes. More specifically, the county assessor found: “Mountain Vista residents must provide their own furnishings and are charged for the cost of operating the home. … [The rule] goes on further to state that, ‘A retirement home is taxable if the residents provide their own furnishings and are charged for the cost of operating the home…’ .... Section 12 defines commercial purpose as ‘The property at issue shall not be used primarily for a commercial purpose, that is, use of a property or any portion thereof to provide services, merchandise, areas or activities for a charge which are generally obtainable from any commercial enterprise and are collateral to the purpose of secret, benevolent and charitable. … ‘The use of property for commercial purpose is controlling, not whether or not a profit is actually made nor how the 11 revenue is ultimately used. If an activity is considered commercial, it does not become noncommercial merely because the revenue derived from the commercial use is devoted to charitable and authorized purposes.’ [¶21] We find this conclusion to be supported by substantial evidence. The county assessor testified that “[t]he residents provide their own furnishings and pay for their own utilities, phone, gas, electric and personal property.” The record also shows that the property is used as housing for senior citizens with means to live independently, and the property is in the competitive housing market. Furthermore, residents pay for the services used in the daily operation of the housing, as well as utilities. [¶22] Mountain Vista attempts to avoid the application of this rule by arguing that the Department of Revenue exceeded its authority in promulgating the rule. In so arguing, Mountain Vista contends that the rule is clearly contrary to a legislative intent and policy to encourage these types of residential facilities. We disagree. The legislature has made numerous revisions to the statutory tax exemptions, the most recent changes taking effect on January 1, 2015. Those changes in fact specifically addressed the exemptions at issue and separated out the exemptions for senior citizens, charitable associations, and benevolent associations. The current exemptions for senior centers and benevolent associations still, however, condition their exemption on a showing that the property is used for primarily noncommercial purposes. The legislature did not add a “commercial purposes” definition, nor did it make changes to address the Department of Revenue’s interpretation of that term. We presume that when the legislature enacts laws, it does so with full knowledge of the existing law. In re Estate of Scherer, 2014 WY 129, ¶ 17, 336 P.3d 129, 134 (Wyo. 2014). Because the legislature has revised these exemptions without addressing the Department of Revenue’s interpretation of the exemption, we conclude that the Department of Revenue’s interpretation is consistent with the legislature’s intent.