Salvation Army v. Department of Taxation of Ohio

166 Ohio St. (N.S.) 51
CourtOhio Supreme Court
DecidedDecember 19, 1956
DocketNo. 34818
StatusPublished

This text of 166 Ohio St. (N.S.) 51 (Salvation Army v. Department of Taxation of Ohio) is published on Counsel Stack Legal Research, covering Ohio Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Salvation Army v. Department of Taxation of Ohio, 166 Ohio St. (N.S.) 51 (Ohio 1956).

Opinions

Taft, J.

The question to be decided is whether the words “purposes only of public charity” as used in Section 5334, General Code (Section 5731.0.9, Revised Code), include religious purposes. The Department of Taxation, appellee herein, contends that they do not and that, since The Salvation Army is an institution not only for what appellee concedes are purposes of public charity but also for religious purposes, it is not an “institution for purposes only of public charity” within the meaning of that statute and therefore it is not entitled to the tax exemption sought.

In our opinion, previous decisions of this court have established the following propositions:

1. That charitable purposes include religious purposes. Sowers v. Cyrenius, 39 Ohio St., 29, 48 Am. Rep., 418; Cullen v. Schmit, 139 Ohio St., 194, 39 N. E. (2d), 146; Cleveland Bible College v. Board of Tax Appeals, 151 Ohio St., 258, 85 N. E. (2d), 284; Hubbard Press v. Glander, Tax Commr., 156 Ohio St., 170, 101 N. E. (2d), 382; American Committee of Rabbinical College of Telshe, Inc., v. Board of Tax Appeals, 156 Ohio St., 376, 102 N. E. (2d), 589; Goldman, a Taxpayer, v. Friars Club, 158 Ohio St., 185, 107 N. E. (2d), 518.

2. That an institution organized and conducted for charitable purposes is an institution for purposes of public charity if its benefits are open and available to the public generally. Gerke, Treas., v. Purcell, 25 Ohio St., 229; American Committee of Rabbinical College v. Board of Tax Appeals, supra (156 Ohio St., 376).

3. That, if the benefits of an institution organized and conducted for religious and other charitable purposes only are open find available to the public generally, such institution is an “institution for purposes only of public charity.” Davis, Aud., [53]*53v. Cincinnati Camp Meeting Assn., 57 Ohio St., 257, 49 N. E., 401; Little, Treas., v. United Presbyterian Theological Seminary, 72 Ohio St., 417, 74 N. E., 193.

Before referring in more detail to some of the foregoing decisions and to other authorities to the same effect, it will be helpful to consider the origin of the statutory words “institution for purposes only of public charity.” This is especially so since some of those decisions involved the construction of similar but not identical words formerly in the Constitution of Ohio.

An inheritance tax was first enacted in Ohio in 1893. In 1900, for the first time an exemption therefrom was provided for “property, or interests in property, transmitted * # * to or for the use of, any institution in said state for purposes of purely public charity.” 94 Ohio Laws, 102.

Apparently in the codification of 1910, these words were changed to read “property, or interests in property, transmitted * * * to or for the use of an institution in this state for purpose only of public charity.” Section 5332, General Code of Ohio 1910.

In 1919 these words were placed in Section 5334, General Code, so as to read so far as material in the instant case:

‘ ‘ The succession to any property passing * * * to or for the use of an institution for purposes only of public charity, carried on in whole or in substantial part within this state, shall not be subject to the [tax].” 108 Ohio Laws, pt. 1, 564.

This language has remained in substantially that form in our statutes since that time and now appears in Section 5731.09, Revised Code.

In Tax Commission v. Security Savings Bank & Trust Co. of Toledo, 117 Ohio St., 443, 159 N. E., 570, it is said in the opinion by Robinson, J., at page 450:

“We are unable to draw a distinction between the phrase of Section 5334, General Code, ‘an institution for purposes only of public charity,’ and the phrase of Section 2, Article XII. of the Ohio Constitution of 1851, ‘institutions of purely public charity. ’
“The Legislature is presumed to know the decisions of this court, and, where it uses words or phrases that have been defined [54]*54or construed by this court, it is presumed to have used them in the sense that they have been so defined or construed; and in the use of the phrase ‘institution for purposes only of public charity,’ found in Section 5334, General Code, the Legislature is presumed to have used it in the sense that this court had theretofore construed a phrase substantially the same.”

In Sowers v. Cyrenius, supra (39 Ohio St., 29), a bequest “for the preaching of the gospel of the Blessed Son of God, as taught by the people known now as Disciples of Christ” was held to create a valid charitable trust. In the court’s opinion by Upson, J., it is said:

“Among the charitable trusts which have been most liberally construed and most uniformly sustained have been those' created for the promotion of religion # *

In Cullen v. Schmit, supra (139 Ohio St., 194), paragraph two of the syllabus reads:

“A church is not engaged in a commercial enterprise and does not lose its character as a charitable institution when, following and in connection with a religious service, it offers religious articles for sale and uses any difference between the cost and sale price thereof for religious purposes.”

In Cleveland Bible College v. Board of Tax Appeals, supra (151 Ohio St., 258), it was held that a college which conferred degrees of Bachelor of Theology and Bachelor of Sacred Music was, within the meaning of the words found in Section 2 of Article XII of the Ohio Constitution, “an institution used exclusively for charitable purposes.”

In Hubbard Press v. Glander, Tax Commr., supra (156 Ohio St., 170), this court unanimously held that “where a nonprofit Ohio corporation organized and controlled by a religious denomination as one of its agencies for carrying on and promoting its religious and charitable enterprises has real and tangible personal property which is devoted and used exclusively in printing and distributing to its churches without profit envelopes and forms used solely to promote and to provide a means for the systematic giving of funds to the churches for their support and benevolences, such property” is “used exclusively for a charitable purpose.”

In American Committee of Rabbinical College v. Board of [55]*55Tax Appeals, supra (156 Ohio St., 376), paragraph one of the syllabus reads:

“If operated without any view to profit, an institution used exclusively for the lawful advancement of education and of religion is an institution used exclusively for charitable purposes.”

In Goldman v. Friars Club, supra (158 Ohio St., 185), the syllabus reads:

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Related

In Re Estate of Salisbury
101 N.E.2d 304 (Ohio Court of Appeals, 1951)
Salvation Army v. Evatt
50 N.E.2d 275 (Ohio Court of Appeals, 1942)
Department of Taxation v. Argus
113 N.E.2d 129 (Ohio Court of Appeals, 1952)
Roche v. Department of Taxation
33 N.E.2d 987 (Ohio Supreme Court, 1941)
American Bible Society v. Department of Taxation
40 N.E.2d 936 (Ohio Supreme Court, 1942)
Tax Commission v. Security Savings Bank & Trust Co.
159 N.E. 570 (Ohio Supreme Court, 1927)
Cleveland Bible College v. Board of Tax Appeals
85 N.E.2d 284 (Ohio Supreme Court, 1949)
Cullen v. Schmit
39 N.E.2d 146 (Ohio Supreme Court, 1942)

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Bluebook (online)
166 Ohio St. (N.S.) 51, Counsel Stack Legal Research, https://law.counselstack.com/opinion/salvation-army-v-department-of-taxation-of-ohio-ohio-1956.