Amarillo Lodge No. 731, AF & AM v. City of Amarillo

473 S.W.2d 264, 1971 Tex. App. LEXIS 2344
CourtCourt of Appeals of Texas
DecidedNovember 8, 1971
Docket8168
StatusPublished
Cited by6 cases

This text of 473 S.W.2d 264 (Amarillo Lodge No. 731, AF & AM v. City of Amarillo) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Amarillo Lodge No. 731, AF & AM v. City of Amarillo, 473 S.W.2d 264, 1971 Tex. App. LEXIS 2344 (Tex. Ct. App. 1971).

Opinions

ELLIS, Chief Justice.

This is an appeal from a judgment by the trial court ordering the payment of ad valorem taxes assessed and levied against certain property owned and used by four Masonic-lodges in Amarillo, Texas, on the finding that such property is subject to taxation. Reversed and rendered.

The suit was filed by four taxing units, the City of Amarillo, Amarillo Independent School District, Amarillo College District, and Amarillo Hospital District, appellees herein, against Amarillo Lodge, No. 731, Ancient Free and Accepted Masonry, Amarillo Chapter No. 198, Royal Arch Masons, Amarillo Council No. 134, Royal and Select Masters, and Amarillo Commandery No. 48, Knights Templar, herein designated as Appellant Lodges, to collect delinquent ad valorem taxes assessed and levied against the appellants’ property. The property in question consists of Lots 7, 8 and 9, Crowdus-Starkey Addition to the City of Amarillo, Potter County, Texas, including the lodge building situated thereon.

The Appellant Lodges deny liability for the taxes and assert, that they qualify for exemption from such taxation as institutions of purely public charity within the purview of the legislative pronouncements in Sections 7 and 22 of Article 7150, Vernon’s Annotated Texas Statutes, enacted pursuant to Section 2 of Article VIII of the Texas Constitution Vernon’s Ann.St.

The case was tried to the court without a jury on a stipulation of facts. The trial court entered judgment denying appellants’ claim for exemption and ordered the payment of taxes, interest, penalty and costs, from which judgment the appellants have duly perfected this appeal.

The appellants have predicated their appeal upon the contentions that the Stipulations and admitted facts established that Appellant Lodges are institutions of purely public charity and that they qualify under Sections 7 and 22 of Article 7150 for exemption from ad valorem taxation. Additionally, appellants contend that their use of the property involved for conducting lodge matters, initiations and ceremonials incident to the work and activities of the Masonic Orders does not defeat their claim for constitutional and statutory exemption from taxation.

The Stipulations of the parties shall be considered in the light of the pertinent constitutional and statutory provisions and the status of the case law dealing with claims for exemptions of the nature involved in this case. Among other matters, it was stipulated that each of the Appellant Lodges is a subordinate lodge of and chartered by the respective Grand Lodges of which they form a part, and the charters of all the Grand Lodges show that they were each incorporated under the laws of the State of Texas for charitable and benevolent purposes. Also, it was stipulated that the Appellant Lodges “are engaged in the work of the Masonic Order and in its nature is fraternal, educational and charitable in character.” The Stipulations further set out that the property involved in this suit is jointly owned and maintained by the Appellant Lodges and used exclusively by them for conducting lodge meetings, initiations and ceremonies incident to the work of the lodges and promoting good fellowship and brotherly love [267]*267among their members and adherents. Further, it was stipulated that the income of the lodges is derived solely from membership dues and initiation fees, and the lodges make no gain or profit. Also, a part of their income goes to their respective Grand Lodges, “none of which make any gain or profit but all of which Grand Lodges are dedicated to charitable, educational and Masonic work purposes.” The Stipulations specifically reflect that the Appellant Lodges financially support the Grand Lodge in permanent and continuous projects of a charitable nature such as the Masonic Home and School for Orphaned Children of deceased Masons and to educate and maintain needy children and grandchildren of deceased Master Masons; the establishment of a home at Arlington, Texas, for the care of aged Masons and their wives and widows; providing funds for the support and maintenance of aged and disabled Masons and widows of deceased Masons in Texas; the provision of an assistance or charity fund for the relief of needy Masons and members of their family suffering from tuberculosis or any malignant or incurable disease; the financial support work of the Committee on Public Education charged with the duty of carrying on the Public School Program of the Grand Lodge and supporting various other activities having to do with the promotion and support of Public Education in Texas; providing funds to extend relief in case of public disaster caused by cyclones, earthquakes, floods or other catas-trophies; establishment and support of the Knights Templar Eye Foundation treating indigent children and adults with eye trouble, whether or not such patients are from Masonic homes and irrespective of race or color; and the sponsorship and support of the Texas Scottish Rite Hospital For Crippled Children in Dallas, Texas, dedicated to the free treatment of needy and indigent crippled children, regardless of race, creed, color or religion. It was further stipulated that the dues of such lodges which are not contributed to their respective Grand Lodges are retained for the upkeep and maintenance of the local lodges, the lodge building and necessary expenses of operation, and the aid of sick and distressed members and their families. None of the lodges pay their members any type of insurance benefits, or engage in any political activity. None of the lodges provide recreational facilities or regular social activities. Occasionally dinners or meals are served in one or more of the Appellant Lodges to their members and guests, without charge being made therefor, with the respective lodges bearing such expenses. It was expressly stipulated that “All moneys acquired from initiations and dues not paid out for current expenses and on building obligations are devoted to charitable and educational purposes and never become the subject matter of gain or profit for private persons or private interests.”

Under the provisions of Section 2 of Article 'VIII of the Texas Constitution, the Legislature may by general laws, exempt from taxation the property listed and described therein, including institutions of purely public charity. Pursuant to the constitutional limitation, the Texas Legislature has enacted various statutes exempting properties belonging to “institutions of purely public charity.” The constitution does not define “institutions of purely public charity” and leaves it to the Legislature to define such term. In 1905, the Legislature, for the first time, sought to define an “institution of purely public charity” and enacted what is now a portion of Section 7 of Article 7150, V.A.T.S. (Acts 29th Leg. Ch. 27, pp. 314-315), which provides:

“ * * * An institution of purely public charity under this act is one which dispenses aid to its members and others in sickness or distress, or at death, without regard to poverty or riches of the recipient, also when the funds, property and assets of such institutions are placed and bound by its laws to relieve, aid and administer in any way to the relief of its members when in want, sickness [268]*268and distress, and provide homes for its helpless and dependent members and to educate and maintain the orphans of its deceased members or other persons.”

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Amarillo Lodge No. 731, AF & AM v. City of Amarillo
473 S.W.2d 264 (Court of Appeals of Texas, 1971)

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Bluebook (online)
473 S.W.2d 264, 1971 Tex. App. LEXIS 2344, Counsel Stack Legal Research, https://law.counselstack.com/opinion/amarillo-lodge-no-731-af-am-v-city-of-amarillo-texapp-1971.