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

Heading: KD Building

Text: The Methodists sought to exempt the KD Building for tax years 1979-82. The building adjoins the Community United Methodist Church Building property. During the disputed tax years it held storage for the Methodist Church, Nome Community Center, Inc., Methodist Thrift Shop, and nonprofit organizations such as the Boy Scouts. The superior court held that only that part of the KD Building used for storage by the Church and the Thrift Shop was exempt support property. The court remanded for apportionment. We affirm the superior court's remand but give different guidelines. Storage space may be exempt as supporting property for other exempt property, or as a charitable use of the property in itself. If on remand the City determines that the Thrift Shop or the Young Center [49] are exempt, then storage space used for those activities is also exempt. While provision of free storage is not in itself a charitable activity, it may be a charitable activity depending on the recipient, the motive and the terms of the storage. On remand, the City should determine whether the provision of storage to the nonprofit groups was a charitable use of the property. In addition, it should consider that use of the KD Building for storage by a particular group or individual may be a de minimus use. Finally, the City must apportion the exempt use of the KD Building. [50]