“[T]he Foundation asserts that
because Autumnwood is an assisted living facility that provides for the needs
of the elderly, no other evidence is necessary to show that it is entitled to a
charitable purposes exemption. … Indeed, “‘by meeting the needs of the aging,
namely, relief of loneliness and boredom, decent housing that has safety and
convenience and is adapted to their age, security, well-being, emotional
stability, and attention to problems of health, a charitable purpose is
accomplished.’” Wittenberg, 782 N.E.2d at
488-89 (quoting Raintree Friends Hous., Inc. v. Indiana Dep’t of State Revenue,
667 N.E.2d 810, 814-15 (Ind. Tax Ct. 1996)). Furthermore, Indiana’s courts have
upheld charitable exemptions in several cases … Nevertheless, neither the language of one case nor an
apparent trend from several cases has established a per se rule that an
assisted living facility that cares for the elderly is automatically considered
exempt by the mere character of its deeds. Rather, as the Court has repeatedly explained,
every exemption case stands on its own facts and, therefore, they are not
susceptible to bright-line tests or other abbreviated inquiries. See, e.g., Jamestown Homes of Mishawaka,
Inc. v. St. Joseph Cnty. Assessor, 914 N.E.2d 13, 15, (Ind. Tax Ct. 2009),
review denied. Accordingly, the Foundation has not shown that the Indiana
Board’s final determination is contrary to law merely because Autumnwood is an
assisted living facility.”
Finding no “per se rule” that an assisted living facility that
cares for the elderly is exempt, Judge Wentworth reviewed the specific facts of
the case:
“The taxpayer has the burden to
prove that both the Foundation and Miller’s lease arrangement is driven by a
charitable purpose and not a profit motive. See
Sangralea Boys Fund, 686 N.E.2d at 958-59. Although an entity’s for-profit
status alone is not sufficient to show that a lease arrangement will result in
private benefit, its status is germane. Cf.
e.g., Spohn v. Stark, 150 N.E. 787, 788 (Ind. 1926) (finding income producing,
rental property taxable when used and rented by the Indiana National Guard)
with State Bd. of Tax Comm’rs v.
Indianapolis Lodge No. 17, Loyal Order of Moose, Inc., 200 N.E.2d 221, 225
(Ind. 1964) (exempting dining room from property tax when it was used for both
profit and exempt purposes). Given that the record in this case simply does not
indicate whether Miller’s has a charitable purpose or a profit motive, the
Court concludes that the Indiana Board’s finding that the Foundation failed to
raise a prima facie case that Autumnwood is entitled to a charitable purposes
exemption under Indiana Code § 6-1.1-10-16 is supported by substantial
evidence.”
