Court Opinion

ID: 9730294
Source: CourtListenerOpinion
Date Created: 2023-08-26 15:07:21.563866+00
Date Added: 2024-06-11T18:26:05.449361
License: Public Domain

Cynar, J.
(concurring in part and dissenting in *463part). While not totally agreeing with the reasoning and result reached by the Tax Tribunal, I must respectfully dissent in part with respect to the majority’s analysis of the Tax Tribunal’s opinion as well as the result reached by my colleagues.
The majority concludes that the tribunal erred in limiting its definition of charity to the distribution of goods or funds to the needy. I see it otherwise. The tribunal found that the subject property had been used by both profit and nonprofit organizations and that the property had been used for other than charitable purposes. The tribunal was not convinced that the maintenance and operation of the subject property as a cultural and historical center or as a meeting place was a charitable purpose within the meaning of the statutes. The tribunal’s review of the activities between January 1, 1979, and December 31, 1979, indicated that, of a total of 80 events, only 31 or 38.75 percent could be clearly identified as fund-raising benefits for charitable organizations. Further, for the calendar year 1980, ending on December 31, 32 out of 138 activities could be so classified. The tribunal observed that the other activities included cocktail parties, receptions, teas, dinner dances, tours, concerts, and meetings.
A charitable purpose encompasses much more than dropping a coin in a canister.
Eleanor Clay Ford had the benefit of highly competent legal counsel in having her will drawn. The will is much more than the words of a fine attorney. The will embodies the foresight, wisdom, intellect, and the charitable heart of the giver. Eleanor Clay Ford contemplated that the property would serve the public as a historical and cultural center and would provide the site for such activities as: conferences and receptions; exhibitions of *464works of art; lectures and symposia; concerts, recitals, and other musical events; transient quarters for artists, lecturers, authors, scientists, and other prominent dignitaries visiting Michigan; temporary residence for distinguished visitors in this country; headquarters for learned societies, community service associations, garden clubs, and other nonprofit organizations; meeting place for local and other groups; public garden and public park; etc.
However, Eleanor Clay Ford was a realist. She did not impose legally binding restrictions on the foundation as to the particular use of the property. She did not disapprove the transfer of land to another charity or municipality, or the sale of excess land for development. Such consideration was left to the foundation trustees.
Only a limited number of the giver’s hopes and expectations have been realized.
I agree with the majority that the relevant inquiry is whether the petitioner promotes the general welfare of the public by extending a gift for the benefit of an indefinite number of people, bringing them under the influence of religion, or maintaining public buildings or works or otherwise lessening the burden of government.
The director and the trustees have a responsibility to preserve, protect, and properly maintain the property. It is a close question whether the property has been available to an indefinite number of people or whether the property has been structured for use by only a certain cross-section of the public. However, I also believe the petitioner does qualify as a charitable institution under the four-pronged exemption test of Engineering Society of Detroit v Detroit, 308 Mich 539, 550; 14 NW2d 79 (1944).
*465The subject property is composed of 50.3 acres and improvements thereon. It was argued on behalf of respondents that if petitioner is a tax exempt institution, its exemption should extend only to the 1.8 acres of the subject property upon which the house and other buildings are located. The local units of government in which the subject property is located could hardly be expected to agree that exempting 50.3 acres from taxation, under the facts of this case, lessens the burden of government.
An occasional use of the land by a boy scout troop or by an antique car gathering does not a charity make.
I would find that the improvements, including the house, the playhouse, the swimming pool and pool house, the power house, the equipment building, the greenhouse, and the gate house are exempt from ad valorem taxation for the 1980 and 1981 tax years. Further, I would remand this case to the Tax Tribunal for further hearing, if needed, and a determination of what additional part of the property surrounding the exempt property should be exempted from the taxation. No costs.