Court Opinion

ID: 9659696
Source: CourtListenerOpinion
Date Created: 2023-08-23 21:52:53.83107+00
Date Added: 2024-06-11T18:14:10.898833
License: Public Domain

HARRIS, Justice
(dissenting).
I respectfully dissent. This case cannot be distinguished logically from South Iowa Methodist Homes, Inc. v. Board of Review, 173 N.W.2d 526 (Iowa 1970), hereafter called Wesley Acres. I believe it unwise to overrule established precedent at a time when the legislature is known to be studying tax exemption statutes and considering an extensive revision. The question is not whether the exemption is wise, appropriate or should exist. The question is whether under the statute and the established principles it does exist. When so inclined the courts observe legislative inaction, following a court’s statutory interpretation, results in something akin to tacit ratification of that interpretation. Cover v. Craemer, 258 Iowa 29, 137 N.W.2d 595.
The majority attempts to distinguish the Wesley Acres case without expressly overruling it. I agree with the trial court in viewing ^he claimed factual dissimilarities as either immaterial under established principles of law or unsupported by the evidence.
It is pointed out the rest home in this appeal had been operated privately for profit prior to its acquisition by the plaintiff. This history should have no influence upon our determination. It is of no logical importance to plaintiff’s claim of a charitable or benevolent intent that the real estate formerly had been the site of a commercial enterprise.
It is pointed out the operation was extensive. Unquestionably plaintiff does own many rest homes throughout the country and conducts a vast operation but it should not therefore be denied an exemption. Neither should plaintiff be penalized because its operation is efficient. See Annot., 37 A.L.R.3d 1191, 1248. In the record before us there is no showing the success of the undertaking in any way contravenes a charitable intent. Indeed there was no profitable operation for the individual rest home in question. Plaintiff was required under its rules to, and did, contribute the sum of $55,402 for expenses and absorbed an additional $105,933 in insurance, payroll, and other taxes for the benefit of Rest View.
It is claimed the case may be distinguished from Wesley Acres because the plaintiff is less closely bound to the Lutheran Church than Wesley Acres was shown bound in its church affiliation. In Wesley Acres the institution was officially and directly controlled by the church. This plaintiff is not so directly connected but is *513controlled by the Lutheran Church. It was established by a Lutheran minister. All members of the board of directors, the general superintendent, the executive director, all regional directors, and all administrative assistants of the plaintiff are required to be Lutheran. The administrator of Rest View at the time of trial was an ordained minister, serving as administrator at some financial sacrifice, earning less than his salary would be in a regular pastorate. I disagree with the majority in the view there was “no evidence plaintiff ever cared for anyone as a matter of charity or benevolence” or that plaintiff’s operation was “with a view of pecuniary profit.”
In order to support a claim of tax exemption it should not be required of the claimant to profess and demonstrate a Franciscan indifference toward the property of the charitable operation. Neither should fiscal ignorance or irresponsibility be a necessary element. Efficiency in a charitable operation and the accumulation of the funds and properties have only to do with how successfully the enterprise is conducted. Success in the operation will make it possible to extend the services to more persons. This fosters the purpose and justification for all charitable exemptions which is to make it possible for charities to provide services which otherwise would have to be provided by the government at public expense. I agree with the holding of the Nebraska Supreme Court on exactly the same question in Evangelical Lutheran Good Samaritan Society v. Gage, 181 Neb. 831, 151 N.W.2d 446.
The concept of charitable tax exemptions is undergoing widespread criticism and attack. The attack has generally met with failure in the courts. See Annot., 45 A.L.R.3d 610. The majority, in addition to abandoning established Iowa precedent, embraces a view contrary to the weight of authorities in other states. Courts generally have referred the tax exemption dispute to its proper forum: the legislative branch.
The majority should observe the same judicial restraint pledged recently in Wisconsin Evangelical Lutheran Synod v. Regis, 197 N.W.2d 355, 357 (Iowa 1972) where we said: “We have every confidence the legislature will soon make changes in which the will of citizens shall be appropriately and precisely expressed.”
I would affirm.