Court Opinion

ID: 9574601
Source: CourtListenerOpinion
Date Created: 2023-08-21 21:06:22.464263+00
Date Added: 2024-06-11T12:44:18.640694
License: Public Domain

DAVID T. PROSSER, J.
¶ 57. (concurring in part, dissenting in part). I concur in the majority's conclusion that Deutsches Land is not entitled to a 25 percent property tax exemption on the Bavarian Inn; but I dissent from its denial of exemptions for Lots 1, 3, and 4. Because this case is highly fact-intensive, some of the facts will be restated.
¶ 58. Deutsches Land, Inc. is a benevolent association which holds 14 acres of property in the City of *103Glendale for five other benevolent associations. Under Wisconsin law, benevolent associations may seek exemption from property tax for up to 10 acres of their property, but they must satisfy the conditions set out in the statute.
¶ 59. On December 30, 1994, Deutsches Land brought an action in the circuit court of Milwaukee County seeking a declaratory judgment that it was entitled to a total tax exemption on Lots 1, 3, and 4 of its Glendale property and a partial tax exemption on the improvements to Lot 2 of its Glendale property. The action was commenced after Deutsches Land had filed an unsuccessful claim with the city and had attempted to secure a full or partial exemption through negotiation.
¶ 60. After a bench trial, Circuit Judge William J. Haese determined that "Lots 1, 3, and 4 of the property of Deutsches Land, Inc. located at 700 W. Lexington Boulevard.. .are exempt form [sic] real property taxation tinder sec. 70.11(4), Stats., for the years 1993, 1994 and 1995." The court also ruled that 25 percent of the Bavarian Inn on Lot 2 was exempt from property taxation. These . determinations were all reversed by the court of appeals, and it is that decision which is under review by this court.
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¶ 61. Lots 1 and 4 of Deutsches Land's Glendale property are soccer fields. Together, they total about 5.6 acres. Lot 4, on the north end of the property, contains a full-sized soccer field and a 1,500 square foot locker room with showers and washroom facilities. Lot 1, on the south end of the property, is a soccer practice area. Lots 1 and 4 are used by the Bavarian Soccer *104Club, one of the five benevolent associations which own Deutsches Land. The circuit court found that:
The Bavarian Soccer Club was founded in 1929 and conducts a year-round program for its 600 members. It has progressed from soccer played primarily by its own adult members to a recreational activity of choice for male German immigrants to include an elaborate youth program recently developed for the children of members and as an outreach to other children in the community. Today 13 youth teams with approximately 15 members per team participate in soccer on the fields located on Lexington Avenue. There are six adult teams, a women's team, a major competitive team, an over-30 team, and interestingly, an under-100 team. The club's announced purpose and activities serve to perpetuate an interest in the game of soccer as part of the Bavarian tradition and to train Germanic youth in the game of soccer and provide them with a wholesome recreational outlook. The languages of the club are both English and German. It makes daily use of the outdoor soccer facilities on Lots 1 and 4 during the season from early spring to mid fall. Practices and tournaments continue throughout the year and require practice sessions. Winter practice takes place in Fest Garden [Fest Hall], located in Old Heidelberg Park. Petitioner's Appendix at 112-13.
A.
¶ 62. The city contends that Deutsches Land may not claim exemption for Lots 1 and 4 because the playing and teaching of soccer are not exempt activities under Wis. Stat. §70.11(4). For this proposition, the city relies on Kickers of Wisconsin, Inc. v. City of Milwaukee, 197 Wis. 2d 675, 541 N.W.2d 193 (Ct. App. *1051995). The majority assumes, without deciding, that the playing and teaching of soccer are covered by § 70.11(4). I would determine that the activities here are covered by the statute and that Kickers is distinguishable.
¶ 63. In Kickers, the organization seeking a tax exemption did not own the land for which it sought exemption. Rather, it leased the land from the Robert A. Uihlein, Jr. 1976 Trust. City of Milwaukee Chief Assessor Peter C. Weissenfluh advised Kickers of Wisconsin, after reviewing the materials submitted by the organization "and the relevant assessment case law," that he had "no doubts that if Kickers owned the property it would qualify for the ten acre exemption. I still have doubts about the ownership issue, and have denied the exemption on that basis." Letter of July 20, 1993, from Peter C. Weissenfluh to Timothy C. Fraut-schi. Exhibit C, Appellant's Appendix in Kickers of Wisconsin, supra.
¶ 64. When Kickers went to court, the City of Milwaukee took the position that a soccer club did not qualify for the exemption; and the circuit court agreed, holding that Kickers did not qualify as an "educational association" entitled to the property tax exemption under § 70.11(4). This decision was affirmed by the court of appeals in a 2 to 1 decision. The majority declared that the case "presents a relatively 'close call' in determining whether Kickers is 'substantially and primarily devoted to educational purposes.'" Kickers, 197 Wis. 2d at 685. But the court said the organization failed to meet the two-step test for "educational associations" set out in Janesville Community Day Care Ctr., Inc. v. Spoden, 126 Wis. 2d 231, 376 N.W.2d *10678 (Ct. App. 1985).1 The court also noted that while Kickers of Wisconsin claimed it qualified as a benevolent association, "Kickers fails to specifically support its argument with reference to a benevolent association." Kickers, 197 Wis. 2d. at 681 n.2.
¶ 65. There are clear differences between this case and Kickers.2 The Bavarian Soccer Club is one of the owners of Deutsches Land which owns the lots; and both Deutsches Land and the Bavarian Soccer Club are indisputably benevolent associations. These benevolent associations are using Lots 1 and 4 for exactly the purpose expected and intended by their benevolent status. Consequently, the Kickers case does not control here, and this court would be hard pressed to deny a tax exemption on Lots 1 and 4 to Deutsches Land on grounds that the organization does not satisfy the cri*107teria for a benevolent association engaging in appropriate activity.3
B.
¶ 66. Even though it is a benevolent association, Deutsches Land must satisfy another condition in the statutes, i.e., that its "land" (Lots 1 and 4) is "necessary for location and convenience of buildings while such property is not used for profit." Wis. Stat. § 70.11(4).
¶ 67. In its argument, Deutsches Land attempted to establish that the Bavarian Inn was a partially exempt building and that the soccer fields were necessary for location and convenience of this building where the soccer club frequently congregates. This argument fails because the Bavarian Inn did not qualify as exempt.
¶ 68. There are, however, two other buildings that may serve as the foundation for the exemption of Lots 1 and 4. First, there is the 1,500 square foot "restroom-locker room" with shower facilities for soccer players located on Lot 4. This building is listed in the Tax Exemption Reports filed by Deutsches Land with the city in 1993, 1994, and 1995, and it was described in testimony at trial. Second, there is Fest Hall, the 12,000 square foot building used for indoor soccer during the winter months. This building is located on Lot 3, which is substantially contiguous to Lots 1 and 4.
¶ 69. For the Bavarian Soccer Club, soccer is a year-round activity. It is played outdoors "daily.. .from *108early spring to mid fall." It is played indoors during the winter.
¶ 70. A benevolent association which seeks to promote soccer as a year-round activity would likely locate a building for indoor practice near land available for outdoor practice and competition. In addition, a building that is used for indoor soccer practice in winter is theoretically available for indoor soccer practice in summer during inclement weather. Fest Hall on Lot 3 and any building on Lot 3 which provides storage for outdoor soccer equipment are convenient to Lots 1 and 4; and, conversely, Lots 1 and 4 are convenient to Fest Hall and to any storage buildings. Lots 1 and 4 are clearly convenient to the relatively new building with washroom, locker room, and shower facilities on Lot 4, which would have been purposely located near the outdoor soccer areas. The relationship between the land and these buildings is symbiotic. Hence, Lots 1 and 4 are wholly or partially exempt from property taxation if any of the buildings to which they are convenient are wholly or partially exempt.
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A.
¶ 71. The new "restróom-locker room" with showers for soccer players is designed to advance the exempt purpose of the benevolent association; and it is not used for any inconsistent purpose. The building is not used for profit by either members or non-members. It is not leased. The record reveals no reason why this soccer-related building should not be exempt from taxation and thereby qualify Lots 1 and 4 for exemption.
*109B.
¶ 72. The exact status of Fest Hall is a more difficult question. Fest Hall, where indoor soccer is played, is part of Lot 3, Old Heidelberg Park. Lot 3 has 4.4 acres and includes a number of small buildings in addition to Fest Hall. The five benevolent associations use Lot 3 in their activities, and Lot 3 is the site of two major festivals that raise funds for these organizations.
¶ 73. The status of Lot 3 is in dispute because Deutsches Land permits Bavarian Waldhaus Inn, Inc., the profit-making entity which operates the Bavarian Inn on Lot 2 for the benevolent associations, to use Old Heidelberg Park, including Fest Hall, on approximately 20 occasions annually for such Bavarian Inn customers as the Milwaukee Medical Clinic, Mortgage Guaranty Insurance Corporation, W. H. Brady Co., Master Lock, and Johnson Controls.
¶ 74. The requirements for total exemption are set out in § 70.11(4):
. . .Property exempted from general property taxes is:
(4) . . .Property owned and used exclusively by. . .benevolent associations. . .but not exceeding 10 acres of land necessary for location and convenience of buildings while such property is not used for profit. . . .Property that is exempt from taxation under this subsection and is leased remains exempt from taxation only if, in addition to the requirements specified in the introductory phrase of this section, the lessee does not discriminate on the basis of race. (Emphasis added.)4
*110¶ 75. To qualify Fest Hall and Lot 3 for total exemption under this subsection, Deutsches Land was required to satisfy several statutory criteria. The. key criteria were summarized by the city in its brief, drawing on language from Milwaukee Protestant Home v. City of Milwaukee, 41 Wis. 2d 284, 293, 164 N.W.2d 289 (1969), to wit: "... a property owner claiming exemption has the burden to demonstrate (1) that it is a benevolent association; (2) that the property is used exclusively for the association's benevolent purpose; and (3) that the property is not used for profit." Defendant-Appellant's brief at 11. We are concerned here with the second and third points.
"USED EXCLUSIVELY"
¶ 76. The court of appeals declared that § 70.11(4) requires "that the property be 'used exclusively by' those benevolent associations and not for profit. . . .This condition is not ambiguous: the term 'exclusively' brooks no exceptions." Deutsches Land, Inc. v. City of Glendale, 215 Wis. 2d 552, 557, 573 N.W.2d 535 (Ct. App. 1997).
¶ 77. The majority properly disagrees with this characterization of the law. Majority op. at 83. Instead, it declares that the relevant question is, "How consequential was the questionable activity when compared to the total activity on the property?" Majority op. at 84.
¶ 78. In answering this question, the facts are completely clear. In 1993, Old Heidelberg Park was used by customers of the Bavarian Inn 17 times; in *1111994, 21 times; in 1995, 20 times. The customers included not only several major corporations but also a labor union, a high school class reunion, and two weddings. The benevolent associations controlled Lot 3 at all other times. In 1993, the benevolent associations exercised control over their property 348 days; in 1994, 344 days; in 1995, 345 days, and during these days, the property was available exclusively for their use. It may have been available for their non-exclusive use on some of the other days. During winter months, Fest Hall was used daily or almost daily for indoor soccer practice. During summer months, the entire lot was used for a variety of benevolent association activities including festivals, picnics, fish fries, and ceremonies, and Fest Hall could have been used for occasional soccer practice. There was no use of Old Heidelberg Park by nonmembers in the months of January, February, March, April, May, October, November, and December in 1993, 1994, or 1995.
¶ 79. Several cases help define the element of exclusive use.5 In Cardinal Publishing Co. v. City of Madison, 205 Wis. 344, 347-48, 237 N.W. 265 (1931) ("Cardinal Publishing I"), this court said:
If there is no segregation of property and devotion of a portion of it to purposes outside of the corporate objects, but if the whole property in a physical sense is primarily devoted to the purposes of the organization, then the fact that there are occasional or *112incidental uses of the property for gain, which is devoted to the purposes of the society claiming the exemption, will not destroy the exemption.
In another case, Northwestern Publishing House v. Milwaukee, 177 Wis. 401, 409, 188 N.W. 636 (1922), the court said:
. . . the departure in this case is so slight as to be negligible and therefore to be disregarded. . .[It] does not amount to a sufficient departure to warrant us in saying that the property is not used exclusively for educational and benevolent purposes, particularly where such work is done as incidental to its main purpose.
Applying these cases to the facts above, I find that nonmember uses of Lot 3 were inconsequential or de minimis.
USE FOR PROFIT
¶ 80. Use for profit is a separate element. The circuit court found that Deutsches Land did not profit from the occasional uses of its property by non-members. It found that Waldhaus Inn used Old Heidelberg Park "without charge." It stated:
Waldhaus Inn, Inc., in the years in question, held approximately 20 non-member events in Old Heidelberg Park without charge. Waldhaus Inn realized income which was duly reported by Waldhaus Inn, Inc. on its tax returns. None of the income from non-member events was distributed to Deutsches Land, United German Societies or any of the five societies. (Emphasis added.)
Petitioner's Appendix at 114. The dates in June, July, August, and September each year when Lot 3 was used *113by non-members produced no revenue for Deutsches Land. They produced zero percent of Deutsches Land's budget.
¶ 81. The circuit court explicitly found that Deut-sches Land's sources of income were rent obtained from Waldhaus Inn, Inc. and income from Volksfest and Oktoberfest in Old Heidelberg Park. Moreover, all this income was used for the purpose of maintaining buildings and grounds of the complex and the payment of taxes and insurance. Id.
¶ 82. During the three years at issue, there was no lease from Deutsches Land which authorized the Bavarian Inn to use Old Heidelberg Park on 20 days per year. Deutsches Land simply had an understanding with Bavarian Waldhaus which permitted the Park to be used from time to time by Deutsches Land's affiliated organization. These occasional uses of Old Heidelberg Park by non-member customers of the Bavarian Inn did not increase the rent paid to Deut-sches Land, a fact which relates to the profit element.
¶ 83. To sum up, on an average of 20 out of 365 days per year, Old Heidelberg Park was used by an affiliated organization which did not charge its customers extra money for use of the Park and did not pay Deutsches Land extra money for use of the Park. Deut-sches Land did not lease a portion of Old Heidelberg Park to some other entity. The occasional uses of its property by non-members did not constitute a consequential percentage of Deutsches Land's income because Deutsches Land was not compensated for these uses.
¶ 84. I believe these facts show that Deutsches Land was entitled to a total exemption for Lot 3 as a matter of law. The uses of Lot 3 by non-members were "comparatively inconsequential." Alonzo Cudworth *114Post No. 23 v. Milwaukee, 42 Wis. 2d 1, 12, 165 N.W.2d 397 (1969). These inconsequential uses did not result in any explicit gain and did not destroy the exemption.
¶ 85. In any event, the established facts provide a sufficient basis for this court to determine whether Deutsches Land was eligible for a total exemption on Lot 3 because any "questionable" non-member activities were inconsequential, or, conversely, whether it was ineligible for a total exemption because those activities must be regarded as "consequential." No additional proof was necessary.
¶ 86. The majority takes a different tack, as though Deutsches Land were a direct beneficiary of every use of Old Heidelberg Park by customers of the Bavarian Inn. It asserts that Deutsches Land did not offer sufficient evidence to answer the question of how consequential the 20 uses were. The majority writes, "Deutsches Land offered sufficient evidence of only the actual corporate use of Old Heidelberg Park; it did not do so for the actual benevolent use of the park." Majority op. at 87.
¶ 87. The majority takes the position that, in analyzing a claim for total exemption, once a benevolent association permits any use of its property by others, it is required to prove not only the extent of the property's use by others but also the extent of the property's use by itself. This means actual use. The association's ownership of the property and the availability of the property for association use count for nothing, while any non-use of the property, any inactivity, counts against the association. I cannot agree that this is a correct statement of the law.
¶ 88. To be sure, the property claiming exemption must be used for a benevolent purpose. The property may not be undeveloped land, which is "quite *115a long distance" from buildings and "had never been used at all." Green Bay & Mississippi Canal Co. v. Outagamie County, 76 Wis. 587, 590, 45 N.W. 536 (1890). The premises may not be "wholly vacant and unoccupied." State ex rel. State Assoc. of Y.M.C.A. v. Richardson, 197 Wis. 390, 392, 222 N.W. 222 (1928). An exemption cannot even be claimed for fully developed property with multiple buildings which has been "vacated" and whose former occupants have "permanently relocated elsewhere." Dominican Nuns v. City of LaCrosse, 142 Wis. 2d 577, 581, 419 N.W.2d 270 (1987). Exempt property must be used.
¶ 89. But these cases do not support the proposition that the owner of developed property which is steadily and frequently used for exempt purposes must document the amount of time devoted to exempt use as well as the amount of time consumed in non-exempt use, and then have added to the non-exempt use the total time in which the property is not used in order to arrive at a reduced percentage of exemption.
¶ 90. In assessing whether "questionable activity" is consequential or inconsequential, assessors and courts have often looked to the revenues derived from the "questionable activity" in relation to total revenues. See Cardinal Publishing Company v. City of Madison, 208 Wis. 517, 243 N.W. 325 (1932) ("Cardinal Publishing IF); Northwestern Publishing House, 177 Wis. 2d 401. Assessors and courts may also look to the percentage of space in a property that has been leased or committed to non-exempt use. Gymnastic Association of the South Side of Milwaukee v. City of Milwaukee, 129 Wis. 429, 109 N.W. 109 (1906); Cardinal Publishing I, 205 Wis. 2d at 347. In theory, assessors and courts who cannot evaluate either revenue or space may have to examine the amount of time exempt prop*116erty is used for non-exempt purposes. But it does not follow that unused time should be counted against the owner any more than unused space is counted against an owner. A rural church used only one day per week does not lose its full property tax exemption. A tax exempt soccer field does not lose its exempt status on those winter and spring days when soccer has to be played indoors. Hence, with respect to the "use" element, so long as exempt property is used on a regular basis for an appropriate exempt purpose, it is entitled to a total exemption, unless its use for non-exempt purposes is not "inconsequential."
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¶ 91. If, for the sake of argument, this court were unable to find a total exemption for Lot 3, the question would become whether Deutsches Land is entitled to a partial exemption under either § 70.11(8) or the § 70.11 preamble. At trial, Deutsches Land was willing to agree to a partial exemption of Lot 3 in order to resolve the case. Petitioner's brief at 22-23. It should not lose everything simply because the circuit court awarded the benevolent association 100 percent. Under these circumstances, the appropriate remedy would be to remand the case to the circuit court for a determination of the precise percentage of partial exemption.
¶ 92. The city contends that Deutsches Land is ineligible for any partial exemption of Lot 3 under § 70.11(8) because Deutsches Land leases Old Heidelberg Park to Bavarian Waldhaus Inn, Inc. This position is consistent with the finding of the court of appeals that: "Both the Bavarian Inn and Old Heidelberg Park are leased to Bavarian Waldhaus, for the for-profit corporation." Deutsches Land, 215 Wis. 2d at 558. (Emphasis added.)
*117¶ 93. In my view, however, this finding is not supported by the record. The circuit court found that Bavarian Waldhaus Inn, Inc. "leases the first floor of the Bavarian Inn from Deutsches Land. This lease is an oral lease." Petitioner's Appendix at 113-14. The circuit court never found that Bavarian Waldhaus Inn, Inc. leases Old Heidelberg Park.
¶ 94. Deutsches Land's last written lease expired in 1990. That lease did not mention Old Heidelberg Park (unless one is prepared to construe the term "restaurant and banquet facility" — singular—as applying to Fest Hall in Old Heidelberg Park).
¶ 95. Wis. Stat. § 704.01 defines "lease" and several other terms in a "landlord and tenant" context.6 By comparing these statutory terms, the most appropriate *118term for the situation involving the occasional use of Lot 3 by the Bavarian Inn is "tenant at will." By definition, a tenant at will does not have a valid lease. If the Bavarian Inn was a tenant at will in Old Heidelberg Park, then the court of appeals was mistaken and Deu-tsches Land is eligible for a partial exemption under § 70.11(8). If, on the other hand, the majority believes that Deutsches Land actually "leased" Old Heidelberg Park to Bavarian Waldhaus Inn, Inc., then it should say so. If that were the situation, Deutsches Land would be ineligible for an exemption under either § 70.11(8) or the § 70.11 preamble,7 and this would not be a sufficiency of evidence case.
¶ 96. The majority notes that the proof required from an applicant for a partial exemption may be quite detailed. It writes: "[W]here the entire property [Lot 3] is used part of the time in for-profit activities, the partial exemption can be calculated in one of two ways. *119The partial exemption can either be determined by comparing the percentage of income attributable to the for-profit activity versus the total income of the exempt organization, or by comparing the percentage of time attributable to the for-profit activity versus the total time the property is used." Majority op. at 92-93.
¶ 97. Here the income approach would not work because Deutsches Land received no income. Hence, the time method would have to be employed. But, as noted above, Deutsches Land has already established how many days the Bavarian Inn and its non-member customers used Lot 3. All other time should be attributed to the benevolent associations.
¶ 98. At the trial, Peter Weissenfluh was asked about the issue of calculating time at the Italian Community Center:
Q: Well, now let me get to the percentage of time. What kind of information did they give you as to percent that supported percentages of time?
A: They actually spelled out the percentages of time that was used for-for for-profit activities and then the corollary would be the not-for-profit, their own use. (Emphasis added.)
¶ 99. There are not three classifications of time - (1) actual time used by the associations, (2) actual time used by others, and (3) dead time, which is counted against the benevolent associations when they are not using their property. There are only two classifications of time. In apportioning time to determine the percentage of a partial exemption, a benevolent association may prove the time its property was used by others and then, as a sensible corollary, claim the remaining time for itself, so long as it is actively using its property. Any *120other result would penalize an association for not using its property 24 hours a day, 7 days a week, 52 weeks a year.
¶ 100. I dissent because Lots 1 and 4 satisfy the statutory criteria of Wis. Stat. § 70.11(4). They are owned by a benevolent association and used for its exempt purposes. These lots are necessary for location and convenience of the locker/shower facility on Lot 4 and Fest Hall, where indoor soccer is played. The locker/shower facility is exempt; and Lot 3, including Fest Hall, is also exempt because it is not leased, its use by non-members is not compensated, and its infrequent occasional use by non-member customers of an affiliated organization is so de minimis, negligible, and comparatively inconsequential that it does not destroy the exemption. If the de minimis use of Lot 3 did impair its total exemption, the lot would clearly be entitled to a substantial partial exemption under § 70.11(8) and the case would have to be remanded for a determination of the exact percentage.
¶ 101. I am authorized to state that Justice Jon P. Wilcox joins in this concurring and dissenting opinion.

 1n his dissent, Judge Ralph Adam Fine wrote:
In my view, the uncontroverted evidentiary submissions establish without a doubt that the Kickers of Wisconsin, Inc., is an "educational association" as that term is used in § 70.11(4), STATS... .It is settled that "educational" is not limited to " 'formal academic curricula.'". . .The Kickers have an admirable record of teaching our state's youngsters not only the principles of soccer, but, more significantly, the principles of sportsmanship, teamwork, and life. In my view, this is not a "relatively 'close call,'" as the Majority believes.
Kickers of Wisconsin, Inc. v. City of Milwaukee, 197 Wis. 2d 675, 687, 541 N.W.2d 193 (Ct. App. 1995).

 Peter C. Weissenfluh testified as a witness for Deutsches Land in this case. He explained some of the differences between Deutsches Land and Kickers of Wisconsin as organizations and stated that Kickers had not directly applied to Milwaukee for a tax exemption but rather had raised the issue on appeal.

 Peter C. Weissenfluh testified that Milwaukee recognizes boccie ball as an authorized exempt activity at the Italian Community Center and gymnastics as an authorized exempt activity at Turner Hall. Cf. Gymnastic Association of the South Side of Milwaukee v. City of Milwaukee, 129 Wis. 429, 109 N.W. 109 (1906).

 The requirements in the "introductory phrase of this section" include the following: "Leasing a part of the property described in this section does not render it taxable if the lessor *110uses all of the leasehold income for maintenance of the leased property, construction debt retirement of the leased property or both and if the lessee would be exempt from taxation under this chapter if it owned the property."

 See also Catholic Woman's Club v. Green Bay, 180 Wis. 102, 192 N.W. 479 (1923). The club was not operated for profit, but the club was used by non-members and its auditorium was frequently rented to other organizations and for "private dancing parties." The non-member activities did not nullify its exemption.

 704.01 Definitions....
(1) "Lease" means an agreement, whether oral or written, for transfer of possession of real property, or both real and personal property, for a definite period of time. A lease is for a definite period of time if it has a fixed commencement date and a fixed expiration date or if the commencement and expiration can he ascertained by reference to some event, such as completion of a building. A lease is included within this chapter even though it may also be treated as a conveyance under ch. 706. An agreement for transfer of possession of only personal property is not a lease.
(2) "Periodic tenant" means a tenant who holds possession without a valid lease and pays rent on a periodic basis. It includes a tenant from day-to-day, week-to-week, month-to-month, year-to-year or other recurring interval of time, the period being determined by the intent of the parties under the circumstances, with the interval between rent-paying dates normally evidencing that intent....
(5) "Tenant at will" means any tenant holding with the permission of his landlord without a valid lease and under circumstances not involving periodic payment of rent; but a person holding possession of real property under a contract of purchase or an employment contract is not a tenant under this chapter. (Emphasis added.)

 If there were a lease covering all of Lot 3, as alleged, Deutsches Land would be ineligible for the exemption under the § 70.11 preamble because the lessee (Bavarian Waldhaus Inn, Inc.) would not "be exempt from taxation under this chapter if it owned the property." Moreover, Deutsches Land probably could not show that it used "all of the leasehold income for maintenance of the leased property, construction debt retirement of the leased property or both. ..." Deutsches Land would be ineligible for exemption for Lot 3 under § 70.11(8) because, by definition, subsection (8) "does not apply to property that is leased by an exempt organization to another person ..." I agree that if Deutsches Land leased a discrete part of Lot 3 to the Bavarian Inn, that "part" would be subject to tax and the unleased part would remain exempt. In addition, a benevolent association like Deutsches Land may lease its entire property to another and still retain its exemption if the lessee satisfies the two tests set out in the preamble as well as the non-discrimination test in § 70.11(4).