Court Opinion

ID: 9532148
Source: CourtListenerOpinion
Date Created: 2023-08-07 04:18:38.063029+00
Date Added: 2024-06-11T13:28:41.030499
License: Public Domain

HANSON, J. pro tem.
I concur in the judgment of reversal as I am of the view that in principle the decision of the Supreme Court in Pasadena Hospital Assn. v. County of *110Los Angeles, 35 Cal.2d 779 [221 P.2d 62], controls here. It is true, as respondent contends, that there are differences of fact between that case and this bnt they do not appear to be of such character as to call for the application of a different rule. The decision in the Pasadena case turned on the fact that the articles of incorporation of the Pasadena Hospital stated that the objects and purposes were to “establish, maintain and carry on ... a hospital for the sick and injured ... or any other lawful purpose where pecuniary profit is not the object thereof ...” As the property under the articles could be used for “lawful purposes” other than “hospital purposes” it was held that there was not by the articles an irrevocable dedication of the property solely to hospital purposes. In the case before us the articles of incorporation of the Moody Institute set forth the objects and purposes under three subheads, the last of which is 3(c) reading as follows: “To receive by gift or otherwise hold, invest, distribute, and expend moneys and property for the purposes stated in the foregoing paragraphs, and for other religious, scientific, and educational purposes.” (Italics supplied.)
From the foregoing quotation it is apparent that any property held by the Moody Institute is not by its articles “irrevocably dedicated” to religious and scientific purposes alone, but to “religious, scientific and educational purposes.” Property which “is held by or used as an educational institution” is not accorded an exemption from taxation under the statute, As the articles of the Moody Institute would permit it to transfer the property to an educational institution to be held or used for educational purposes rather than religious or scientific purposes the articles do not irrevocably dedicate the property to the latter purposes. To achieve that result in the future Moody Institute will have to amend its articles at least to the extent of striking out the word “educational” as a part of its purposes. By so doing it may still carry on, as I see it, the work it is now doing, and yet be entitled to the tax exemption. The statute to be sure expressly excludes from its benefits educational institutions, religious or secular. However, I do not understand that such an exclusion applies to property used in educational work carried on as an incident to a scientific or religious purpose. The difficulty with respondent’s articles is that they are too wide in their sweep under the holding in the Pasadena case. Were it not for the Pasadena case I would dissent on the ground that I believe that the language of the articles of a corporation is not alone the controlling factor, but that the use to which the property *111has been and is being put is equally as important, if not controlling. To my mind articles which can be amended overnight do not spell out “irrevocable dedication” as to objects and purposes. Inasmuch as the statute does not grant a perpetual exemption, but only a year’s exemption upon annual applications the present use rather than a possible future use would seem to be the controlling factor.