IN THE STATE TAX COMMISSION OF MISSOURI
| THE HOUSING PARTNERSHIP, INC. and | ) | |
| LEMAY HOMES, LLC. | ) | |
| Complainants, | ) | |
| ) | ||
| v. | ) | Appeal No. 18-11088 through |
| ) | 18-11120 | |
| JAKE ZIMMERMAN, ASSESSOR | ) | |
| ST. LOUIS COUNTY, MISSOURI, | ) | |
| Respondent. | ) | |
| ) |
DECISION AND ORDER
HOLDING
The decision of the St. Louis County Board of Equalization (BOE) sustaining the assessment made by Jake Zimmerman, Assessor, St. Louis County, Missouri (Respondent) is AFFIRMED, in part, and SET ASIDE, in part.
The Housing Partnership, Inc., and Lemay Homes, LLC, (Complainants) presented substantial and persuasive evidence establishing that the following subject properties are exempt from ad valorem taxation under Article X, Section 6, of the Missouri Constitution for tax year 2017-2018:
| Appeal Number | Parcel Number | Address |
| 18-11089 | 27G210285 | 309 E. Arlee Ave. |
| 18-11090 | 27G210274 | 311 E. Arlee Ave. |
| 18-11103 | 27G141141 | 108 E. Etta |
| 18-11111 | 27G432463 | 618 Lagro Ave |
| 18-11112 | 28G440533 | 9907 Linn Ave. |
| 18-11114 | 27G141912 | 108 Mann St. |
| 18-11117 | 28G440661 | 206 E Ripa Ave |
| 18-11118 | 28G440744 | 208 E Ripa Ave |
| 18-11119 | 28G440571 | 218 E Ripa Ave |
The Housing Partnership, Inc., and Lemay Homes, LLC. (Complainants) failed to present substantial and persuasive evidence establishing that the following subject properties are exempt from ad valorem taxation under Article X, Section 6, of the Missouri Constitution for tax year 2017-2018:
| Appeal Number | Parcel Number | Address |
| 18-11088 | 27G120562 | 229 E. Arlee Ave. |
| 18-11091 | 27G120993 | 9720 S. Broadway |
| 18-11092 | 27G120470 | 9800 S. Broadway |
| 18-11093 | 28G431843 | 9905 S. Broadway |
| 18-11094 | 27G120324 | 9806 S. Broadway |
| 18-11095 | 27G120283 | 9810 S. Broadway |
| 18-11096 | 27G120223 | 9814 S. Broadway |
| 18-11097 | 28G431834 | 9901 S. Broadway |
| 18-11098 | 28G432024 | 9929 S. Broadway |
| 18-11099 | 28G432101 | 9931 S. Broadway |
| 18-11100 | 27G141691 | 128 E. Cartwright |
| 18-11101 | 27G141710 | 143 E. Cartwright |
| 18-11102 | 27G120173 | 9820 Erie Dr. |
| 18-11104 | 27G141242 | 110 E. Etta |
| 18-11105 | 27G141307 | 143 E Etta |
| 18-11106 | 27G121152 | 143 E Felton Ave |
| 18-11107 | 27G120810 | 200 E Felton Ave |
| 18-11108 | 27G412036 | 9415 Gentry Ave. |
| 18-11109 | 27G410100 | 9502 Gentry Ave. |
| 18-11110 | 27G121662 | 9833 Joplin Ave |
| 18-11113 | 28G440506 | 9910 Linn Ave |
| 18-11115 | 27G230214 | 9626 Perrin Ave |
| 18-11116 | 28G440607 | 120 E Ripa |
| 18-11120 | 27G132213 | 9536 Gentry Ave. |
Complainant appeared by counsel Ryan McCarty.
Respondent appeared by counsel Steve Robson.
Case heard and decided by Chief Counsel Maureen Monaghan (Hearing Officer).
ISSUE
Complainant appealed Respondent’s ad valorem taxation of the subject property on the ground that the subject property qualified for exemption in 2018 because Complainants are tax exempt pursuant to 26 U.S.C. 501(c)(3) and used the property for charitable purposes. Complainants did not challenge the assessed valuation of the subject property.
FINDINGS OF FACT
- Authority. Complainants timely appealed to the State Tax Commission (STC) from the decision of the BOE.
- Evidentiary Hearing. Upon agreement of the parties on May 20, 2019, the issue of exemption was presented on the record with all pending objections withdrawn.
- Identification and Description of Subject Properties.
| Appeal Number | Parcel Number | Address | Description |
| 18-11088 | 27G120562 |
229 E. Arlee Ave. |
The property has been used as green space since 2014. The plan is for it to be a side yard for a neighboring residence. Exhibits U and V. |
| 18-11089 | 27G210285 |
309 E. Arlee Ave. |
The property has been vacant land since 2015. The plan is to combine the property with 27G210274 for development as a house. Exhibit U. |
| 18-11090 | 27G210274 |
311 E. Arlee Ave.
|
The property was acquired in 2013. There are preliminary plans developed for the property to include a remodel of the improvement. Urban Werks conducted a feasibility study. Vatterott, contractor, is estimating the cost for the project for rehab and an addition. Parcel 27G210285 may be combined. Exhibits N and U. |
| 18-11091 | 27G120993 | 9720 S. Broadway | The property has been vacant land since 2017. The plan is for commercial or mixed use. Exhibits J and U. |
| 18-11092 | 27G120470 |
9800 S. Broadway
|
The property has been vacant land since 2014. Environmental assessments were needed. The plans are for a mixed use of offices and apartments. Exhibits R and U |
| 18-11093 | 28G431843 |
9905 S. Broadway |
The property has been vacant land since 2013. Environmental assessments were needed. The plans are for a mixed use of offices and apartments. Exhibits R and U |
| 18-11094 | 27G120324 |
9806 S. Broadway |
The property was acquired in 2016. Environmental assessments were needed. The plans are for a mixed use of offices and apartments. Exhibits R and U |
| 18-11095 | 27G120283 |
9810 S. Broadway |
The property was acquired in 2016. Environmental assessments were needed. The plans are for a mixed use of offices and apartments. Exhibits R and U |
| 18-11096 | 27G120223 |
9814 S. Broadway |
The improvements are to be removed in 2019. Environmental assessments were needed. The plans are for a mixed use of offices and apartments. Exhibits R and U |
| 18-11097 | 28G431834 |
9901 S. Broadway |
The property was acquired in 2013. The improvements may be removed in the future. Plan for commercial use. Ex J: Plan for commercial mixed use |
| 18-11098 | 28G432024 |
9929 S. Broadway |
The property has been vacant land since 2017. They are developing plans for commercial development. Exhibits J and U. |
| 18-11099 | 28G432101 |
9931 S. Broadway |
The property has been vacant land since 2017. They are developing plans for commercial development. Exhibits J and U. |
| 18-11100 | 27G141691 |
128 E. Cartwright |
The property has been used as green space since 2015. The plan is for it to be a side yard for a neighboring residence. Exhibits U and V. |
| 18-11101 | 27G141710 |
143 E. Cartwright |
The property has been used as green space since 2014. The plan is for it to be a side yard for a neighboring residence. Exhibits U and V. |
| 18-11102 | 27G120173 |
9820 Erie Dr. |
The property has been used as green space since 2014. The plan is for it to be a side yard for a neighboring residence. Exhibits U and V. |
| 18-11103 | 27G141141 |
108 E. Etta |
The property was acquired in 2016. The improvements are to be removed in 2019. They are conducting a feasibility study. The need to develop plans. Exhibit U |
| 18-11104 | 27G141242 | 110 E. Etta | The property was acquired in 2016. The improvements are to be removed. They will develop plans. Exhibit U. |
| 18-11105 | 27G141307 | 143 E Etta | The property was acquired in 2016. The improvements are to be removed. They will develop plans. Exhibit U. |
| 18-11106 | 27G121152 |
143 E Felton Ave |
The property has been used as green space since 2015. The plan is for it to be a side yard for a neighboring residence. Exhibits U and V. |
| 18-11107 | 27G120810 |
200 E Felton Ave |
The property was acquired in 2016. The improvements are scheduled to be removed in 2019. Plans have not been made for this property. It is possible that they property may be sold to a local landlord or investor. Exhibits J, S, and U. |
| 18-11108 | 27G412036 |
9415 Gentry Ave. |
The property was acquired in 2015. The improvements were removed in 2018. The plan is to sell for a multi-development site. Exhibit J. |
| 18-11109 | 27G410100 |
9502 Gentry Ave. |
The property has been used as green space. The plan is for it to be a side yard for a neighboring residence. Exhibits U and V. |
| 18-11110 | 27G121662 |
9833 Joplin Ave
|
The property was acquired in 2012. It is land only. They are holding it until plans at 9800 S. Broadway are completed. Exhibits J and U. |
| 18-11111 | 27G432463 | 618 Lagro Ave | The property was acquired in 2015. A home is planned for the property. They are estimating the cost. Exhibits Q and U. |
| 18-11112 | 28G440533 |
9907 Linn Ave. |
The property was acquired in 2016. They plan on demolishing the improvements and combine it with 206 and 208 E. Ripa for a house on the property. Exhibit Q |
| 18-11113 | 28G440506 | 9910 Linn Ave | The property was acquired in 2015. The improvements were removed in 2017. Exhibit Q |
| 18-11114 | 27G141912 | 108 Mann St. | The property was acquired in 2015. The improvements are to be removed pursuant to the development plans. Exhibit U. |
| 18-11115 | 27G230214 |
9626 Perrin Ave
|
Plans are being developed. Plans may include a large residential development. It is possible they will build homes to sell at market value and possibly make it a joint venture with a developer. Exhibits J and U. |
| 18-11116 | 28G440607 |
120 E Ripa |
The property has been used as green space. The plan is for it to be a side yard for a neighboring residence. Exhibits U and V. |
| 18-11117 | 28G440661 |
206 E Ripa Ave
|
The property was acquired in 2016. The improvements will be demolished. UrbanWerks will study the property for new construction. Preliminary plans have been developed for rehabilitation of 208 E Ripa with an addition. This property will be included along with 9907 Linn. Exhibit O and U. |
| 18-11118 | 28G440744 |
208 E Ripa Ave |
The property was acquired in 2015. The improvements are to be removed in 2019. Preliminary plans developed and costs need to be estimated. It will be combined with 206 E. Ripa and 9907 Linn. Exhibits O and U |
| 18-11119 | 28G440571 |
218 E Ripa Ave |
The property was acquired in 2016. The improvements are to be removed in 2019. Plans are developed and the costs are being estimated. Exhibit U |
| 18-11120 | 27G132213 |
9536 Gentry Ave. |
The property was acquired in 2015. The improvements were removed. The property will probably be developed in 2020. Trying to develop plans (Exhibit U) |
- Assessment. Respondent classified the following properties as residential property and determined the following values as of January 1, 2017:
| Appeal Number | Parcel Number | True Value in Money |
| 18-11088 | 27G120562 | $ 17,300 |
| 18-11089 | 27G210285 | $ 23,400 |
| 18-11090 | 27G210274 | $ 58,900 |
| 18-11091 | 27G120993 | $ 6,500 |
| 18-11092 | 27G120470 | $ 40,500 |
| 18-11093 | 28G431843 | $ 21,600 |
| 18-11094 | 27G120324 | $ 85,500 |
| 18-11095 | 27G120283 | $ 282,000 |
| 18-11096 | 27G120223 | $ 33,800 |
| 18-11097 | 28G431834 | $ 55,000 |
| 18-11098 | 28G432024 | $ 28,200 |
| 18-11099 | 28G432101 | $ 23,700 |
| 18-11100 | 27G141691 | $ 21,000 |
| 18-11101 | 27G141710 | $ 23,400 |
| 18-11102 | 27G120173 | $ 23,300 |
| 18-11103 | 27G141141 | $ 52,400 |
| 18-11104 | 27G141242 | $ 48,800 |
| 18-11105 | 27G141307 | $ 77,700 |
| 18-11106 | 27G121152 | $ 23,400 |
| 18-11107 | 27G120810 | $ 29,600 |
| 18-11108 | 27G412036 | $ 25,200 |
| 18-11109 | 27G410100 | $ 23,400 |
| 18-11110 | 27G121662 | $ 32,600 |
| 18-11111 | 27G432463 | $ 23,200 |
| 18-11112 | 28G440533 | $ 41,100 |
| 18-11113 | 28G440506 | $ 19,700 |
| 18-11114 | 27G141912 | $ 62,700 |
| 18-11115 | 27G230214 | $ 27,000 |
| 18-11116 | 28G440607 | $ 18,100 |
| 18-11117 | 28G440661 | $ 34,000 |
| 18-11118 | 28G440744 | $ 600 |
| 18-11119 | 28G440571 | $ 39,600 |
| 18-11120 | 27G132213 | $ 22,400 |
5. Board of Equalization. The BOE sustained Respondent’s values of the subject properties.
6. Complainants. The Housing Partnership (formerly known as Lemay Housing Partnership, Inc) is a Missouri non-profit corporation established in 1998. (Exhibits C and D). The stated purpose is to develop, rehabilitate and construct affordable housing and provide affordable housing opportunities to low and moderate income individuals and families. Lemay Homes, LLC, is a single-purpose entity created by The Housing Partnership. Lemay Homes cannot derive profit. (Exhibit U) It is allowed to receive low-income housing tax credits.
7. Complainants’ Evidence. Complainant offered the following Exhibits:
| Exhibit | Description |
| Exhibit A | Articles of Organization |
| Exhibit B | Limited Liability Company |
| Exhibit C | Articles of Amendment for a Nonprofit Corporation |
| Exhibit D | Corporation in Good Standing |
| Exhibit E | Second Amendment and Restated Bylaws |
| Exhibit F | IRS 501(c)(3) status |
| Exhibit G | IRS 990 |
| Exhibit H | Audited Financial Statements 2016-2017 |
| Exhibit I | Handout explaining the organization |
| Exhibit J | Power Point on Properties |
| Exhibit K | Strategic Plan including senior apartments, affordable new homes, commercial and retail space, and mixed use space. |
| Exhibit L | Business Plan Framework |
| Exhibit M | Goals and Outcome Report |
| Exhibit N | Renovation Plan |
| Exhibit O | Renovation Plan |
| Exhibit P | Subrecipient Agreement |
| Exhibit Q | House Plans |
| Exhibit R | Senior Living Plans |
| Exhibit S | Renovation Plan |
| Exhibit T | Renovation Plan |
| Exhibit U | Written Direct Testimony (WDT) Kate Reese |
| Exhibit V | Written Rebuttal Testimony (WRT) Kate Reese |
8. Respondent’s Evidence.
| Exhibit | Description |
| Exhibit 1 | Wynell Landers CV |
| Exhibit 2 | Field Inspection |
| Exhibit 3 | Table Properties |
| Exhibit 4 | Properties Record Card |
| WDT | Wynell Landers |
9. Taxation of the Property. Complainants’ evidence was substantial and persuasive to establish that the following properties qualify as exempt from ad valorem taxation under Article X, Section 6 of the Missouri Constitution on January 1, 2018.
| Appeal Number | Parcel Number | Address |
| 18-11089 | 27G210285 | 309 E. Arlee Ave. |
| 18-11090 | 27G210274 | 311 E. Arlee Ave. |
| 18-11103 | 27G141141 | 108 E. Etta |
| 18-11111 | 27G432463 | 618 Lagro Ave |
| 18-11112 | 28G440533 | 9907 Linn Ave. |
| 18-11114 | 27G141912 | 108 Mann St. |
| 18-11117 | 28G440661 | 206 E Ripa Ave |
| 18-11118 | 28G440744 | 208 E Ripa Ave |
| 18-11119 | 28G440571 | 218 E Ripa Ave |
CONCLUSIONS OF LAW AND DECISION
Jurisdiction
The Commission has jurisdiction to hear this appeal and correct any assessment which is shown to be unlawful, unfair, arbitrary or capricious. The Hearing Officer shall issue a decision and order affirming, modifying, or reversing the determination of the Board of Equalization, and correcting any assessment which is unlawful, unfair, improper, arbitrary, or capricious. Mo. Const. art. X, sec. 14; Sections 138.430, 138.431, 138.431.4, RSMo. 2000[1]
Presumption In Appeal
There is a presumption of validity, good faith and correctness of assessment by the BOE. Hermel, Inc. v. State Tax Comm’n, 564 S.W.2d 888, 895 (Mo. banc 1978); Chicago, Burlington & Quincy Ry. v. State Tax Comm’n, 436 S.W.2d 650, 656 (Mo. 1968); May Department Stores Co. v. State Tax Comm’n, 308 S.W.2d 748, 759 (Mo. 1958). This presumption is a rebuttable rather than a conclusive presumption. The presumption of correct assessment is rebutted when the taxpayer presents substantial and persuasive evidence to establish that the BOE’s valuation is erroneous and what the fair market value should have been placed on the property. Hermel, supra; Cupples-Hesse Corp v. State Tax Comm’n, 329 S.W.2d 696, 702 (Mo. 1959).
Exemptions
Taxation of property is the rule and exemption from taxation is the exception. United Cerebral Palsy Ass’n of Greater Kansas City v. Ross, 789 S.W.2d 798, 799 (Mo. banc 1990). Tax exemptions are not favored in the law, and statutes granting exemptions are to be strictly, yet reasonably, construed against the one claiming the exemption. Missouri Church of Scientology v. State Tax Comm’n, 560 S.W.2d 837, 844 (Mo. banc 1987), State ex rel. Union Electric Co. v. Goldberg, 578 SW2d 921,923 (Mo. Banc 1979). A property owner who claims the exemption bears a substantial burden to prove that his property falls within the exempted class. United Cerebral Palsy Ass’n of Greater Kansas City, 789 S.W.2d at 799.
Under Missouri law, all property, real and personal, actually and regularly used exclusively for religious worship, for schools and colleges, or for purposes purely charitable and not held for private or corporate profit, except that the exemption herein granted does not include real property not actually used or occupied for the purpose of the organization but held or used as investment even though the income or rentals received therefrom is used wholly for religious, educational or charitable purposes, are exempt from taxation for state, county or local purposes. Section 137.100(5).
Under the three-pronged Franciscan test, a complainant claiming exemption from property taxation must prove that (1) the subject property is actually and regularly used exclusively for purposes purely charitable; (2) the property is owned and operated on a not-for-profit basis; and (3) the dominant use of the property must be for the benefit of an indefinite number of people and must directly or indirectly benefit society generally. United Cerebral Palsy Ass’n of Greater Kansas City, 789 S.W.2d at 801, citing Franciscan Tertiary Province of Missouri, Inc. v. State Tax Commission, 566 S.W.2d 213 (Mo. banc 1978). Complainant’s failure to prove any single element is sufficient for denial of exemption.
The actual use of the real property is the controlling factor in a determination of whether or not the real property is exempt from taxation. Franciscan Tertiary Province of Missouri, Inc., 566 S.W.2d at 224. The dominate use of the property must be for the benefit of an indefinite number of people, for the purpose of “bringing their hearts under the influence of education or religion, by relieving their bodies from disease, suffering, or constraint, by assisting them to establish themselves for life, or by erecting or maintaining public buildings or works or otherwise lessening the burdens of government.” Id.
Discussion
Under the three-pronged Franciscan test, a complainant claiming exemption from property taxation must prove that (1) the subject property is actually and regularly used exclusively for purposes purely charitable; (2) the property is owned and operated on a not-for-profit basis; and (3) the dominant use of the property must be for the benefit of an indefinite number of people and must directly or indirectly benefit society generally.
The evidence presented provided the various uses or planned uses for the property including green space, affordable housing projects, commercial projects and mixed use projects. Other than property used as “green space,” the property is in various stages of development from obtaining the property to plans and cost projections.
Green Space
The following properties are deemed “green space” by Complainants. (Exhibit V)
| Appeal Number | Parcel Number | Address |
| 18-11088 | 27G120562 | 229 E. Arlee Ave. |
| 18-11100 | 27G141691 | 128 E. Cartwright |
| 18-11101 | 27G141710 | 143 E. Cartwright |
| 18-11102 | 27G120173 | 9820 Erie Dr. |
| 18-11106 | 27G121152 | 143 E Felton |
| 18-11109 | 27G410100 | 9502 Gentry Ave. |
| 18-11113 | 28G440506 | 9910 Linn Ave |
| 18-11116 | 28G440607 | 120 E Ripa |
These properties are deemed green space by Complainants. No courts have addressed the issue of whether land held for the purpose of preserving “green space” is “actually and regularly used” for a charitable purpose so that it is exempt from taxation. Nonetheless, “each tax exemption case is peculiarly one which must be decided upon its own facts, turning upon the particular record presented.” St. John’s Mercy Hosp. v. Leachman, 522 S.W.2d 723, 725 (Mo. banc 1977). A review of cases makes it clear the determinative fact is that some actual activity must be undertaken in order to meet this requirement. Sunday School Bd of Southern Baptist Conv. v. Mitchell, 658 S.W.2d 1, 5 (Mo. banc 1983); see also Missouri United Methodist Retirement Homes v. State Tax Comm’n, 522 SW2d 745 (Mo. banc 1975) (a charitable use exemption depends upon the use made of the property and not solely upon the stated purpose of the organization). The property must be dedicated unconditionally to a charitable activity, and “it is the purpose for which the owner actually uses the property that is controlling, not potential purposes for which the property could be used.” Abbott Ambulance Inc v. Leggett 926 SW2d 92, 96 (Mo. App 1996) (Emphasis added) Since it cannot be said that the properties are “used”, it cannot be said that it would be entitled to exemption from taxation.
Commercial
Complainants own ten parcels in which the current development plans are commercial use or include commercial use. Land and improvements held for the purpose of commercial endeavors would not be a use that would qualify a property for exemption. Such use would not bring hearts under the influence of education or religion, relieve bodies from disease, suffering, or constraint, or otherwise lessening the burdens of government. Also, there is case law authority indicating that the promotion of economic or business interests is not inherently a charitable use as charity is defined for property tax purposes. See, Home Builder’s Ass’n v. St. Louis Cty Bd. of Equalization, 803 S.W. 2d 636, Mo. App. 1991).
Complainants failed to present evidence that the following properties are being used for a charitable purpose in that the substantial and persuasive evidence presented was as their future use involving commercial endeavors.
| Appeal Number | Parcel Number | Address | Description |
| 18-11091 | 27G120993 | 9720 S. Broadway | The property has been vacant land since 2017. They plan is for commercial or mixed use. Exhibits J and U. |
| 18-11092 | 27G120470 | 9800 S. Broadway
|
The property has been vacant land since 2014. Environmental assessments were needed. The plans are for a mixed use of offices and apartments. Exhibits R and U |
| 18-11093 | 28G431843 | 9905 S. Broadway | The property has been vacant land since 2013. Environmental assessments were needed. The plans are for a mixed use of offices and apartments. Exhibits R and U |
| 18-11094 | 27G120324 | 9806 S. Broadway | The property was acquired in 2016. Environmental assessments were needed. The plans are for a mixed use of offices and apartments. Exhibits R and U |
| 18-11095 | 27G120283 | 9810 S. Broadway | The property was acquired in 2016. Environmental assessments were needed. The plans are for a mixed use of offices and apartments. Exhibits R and U |
| 18-11096 | 27G120223 | 9814 S. Broadway | The improvements are to be removed in 2019. Environmental assessments were needed. The plans are for a mixed use of offices and apartments. Exhibits R and U |
| 18-11097 | 28G431834 | 9901 S. Broadway | The property was acquired in 2013. The improvements may be removed in the future. Plan for commercial use. Ex J: Plan for commercial mixed use |
| 18-11098 | 28G432024 | 9929 S. Broadway | The property has been vacant land since 2017. They are developing plans for commercial development. Exhibits J and U. |
| 18-11099 | 28G432101 | 9931 S. Broadway | The property has been vacant land since 2017. They are developing plans for commercial development. Exhibits J and U. |
| 18-11110 | 27G121662 | 9833 Joplin Ave
|
The property was acquired in 2012. It is land only. They are holding it until plans at 9800 S. Broadway are completed. Exhibits J and U. |
Development For Charitable Use
In Franciscan the Court reasoned that the property “must be dedicated unconditionally to the charitable activity in such a way that there will be no profit, presently or prospectively, to individuals or corporations.” 566 SW2d 224 (emphasis supplied).
In many instances, a religious, educational or charitable entity may, either through purchase or by donation, obtain an unimproved or partially improved tract of land for which it is intended that the property be developed and used for a tax-exempt purpose. The issue becomes how a not-for-profit entity might obtain the benefit of its statutory right under Section 137.100 while it intends and seeks to develop the land for what would clearly otherwise be an exempt purpose and use.
Taking the present fact situation as the basis for the illustration, a parcel of property was obtained by Complainants. Complainants may be looking to a real eventuality of constructing an improvement which use would qualify it for an exemption. From past appeals the State Tax Commission looked to elements as a fund raising program for a new building, a building committee, plans and drawings, or plans for consultations with architects and government officials about locating of a new facility. These activities would clearly manifest a definite intention to develop the property for Complainants’ charitable use. An erection of a sign noting the site to be the future home of the affordable housing would be further tangible evidence of the realistic intention that the property was to be utilized in the future for a charitable purpose. Certainly, bringing on site the equipment to actually commence initial construction is clear evidence of development for the exempted use.
Such activities as have just been outlined provide a basis that the “intention” to develop is something more than just a hope or dream that is some time away from realization and actualization. Each case will vary from fact situation to fact situation and no hard and fast rule can be laid down to address every case of the acquisition of undeveloped land and the elements and steps that would qualify as the property being in use for an exempt purpose. It would be something far less than having the facility ready and presented as a turnkey operation and more than simply an entity agreeing that at some time in the future when things are right that development of the land would be commenced.
Complainants did not present substantial and persuasive evidence that the development of the following properties is something more than just a hope or dream that is some time away from realization and actualization:
| Appeal Number | Parcel Number | Address | Description |
| 18-11104 | 27G141242 | 110 E. Etta | The property was acquired in 2016. The improvements are to be removed. They will develop plans. Exhibit U. |
| 18-11105 | 27G141307 | 143 E Etta | The property was acquired in 2016. The improvements are to be removed. They will develop plans. Exhibit U. |
| 18-11107 | 27G120810 | 200 E Felton Ave | The property was acquired in 2016. The improvements are scheduled to be removed in 2019. Plans have not been made for this property. It is possible that they property may be sold to a local landlord or investor. Exhibits J, S, and U. |
| 18-11108 | 27G412036 | 9415 Gentry Ave. | The property was acquired in 2015. The improvements were removed in 2018. The plan is to sell for a multi-development site. Exhibit J. |
| 18-11115 | 27G230214 | 9626 Perrin Ave
|
Plans are being developed. Plans may include a large residential development. It is possible they will build homes to sell at market value and possibly make it a joint venture with a developer. Exhibits J and U. |
| 18-11120 | 27G132213 | 9536 Gentry Ave. | The property was acquired in 2015. The improvements were removed. The property will probably be developed in 2020. Trying to develop plans (Exhibit U) |
Complainants have presented substantial and persuasive evidence that the following properties have been developed to such a point that manifests and intention and real eventuality of constructing an improvement for Complainant’s charitable use.
| Appeal Number | Parcel Number | Address | Description |
| 18-11089 | 27G210285 | 309 E. Arlee Ave. | The property has been vacant land since 2015. The plan is to combine the property with 27G210274 for development as a house. Exhibit U. |
| 18-11090 | 27G210274 | 311 E. Arlee Ave.
|
The property was acquired in 2013. There are preliminary plans developed for the property to include a remodel of the improvement. Urban Werks conducted a feasibility study. Vatterott, contractor, is estimating the cost for the project for rehab and an addition. Parcel 27G210285 may be combined. Exhibits N and U. |
| 18-11103 | 27G141141 | 108 E. Etta | The property was acquired in 2016. The improvements are to be removed in 2019. They are conducting a feasibility study. The need to develop plans. Exhibit U |
| 18-11111 | 27G432463 | 618 Lagro Ave | The property was acquired in 2015. A home is planned for the property. They are estimating the cost. Exhibits Q and U. |
| 18-11112 | 28G440533 | 9907 Linn Ave. | The property was acquired in 2016. They plan on demolishing the improvements and combine it with 206 and 208 E. Ripa for a house on the property. Exhibit Q |
| 18-11114 | 27G141912 | 108 Mann St. | The property was acquired in 2015. The improvements are to be removed pursuant to the development plans. Exhibit U. |
| 18-11117 | 28G440661 | 206 E Ripa Ave
|
The property was acquired in 2016. The improvements will be demolished. UrbanWerks to study the property for new construction. They developed preliminary plans for rehabilitation of 208 E Ripa with an addition. This property will be included along with 9907 Linn. Exhibit O and U. |
| 18-11118 | 28G440744 | 208 E Ripa Ave | The property was acquired in 2015. The improvements are to be removed in 2019. Preliminary plans developed and costs need to be estimated. It will be combined with 206 E. Ripa and 9907 Linn. Exhibits O and U |
| 18-11119 | 28G440571 | 218 E Ripa Ave | The property was acquired in 2016. The improvements are to be removed in 2019. Plans are developed and the costs are being estimated. Exhibit U |
Conclusion
Although a taxing statute is construed strictly against the state, an exemption statute is strictly construed against the one claiming the exemption. State ex rel. Union Electric Co. v. Goldberg, 578 S.W.2d 921, 923 (Mo. banc 1979); State ex rel. Dravo Corp v. Spradling, 515 S.W.2d 512 (Mo.1974); Tiger v. State Tax Comm’n, 277 S.W.2d 561, 564 (Mo.1955); American Bridge Co. v. Smith, 179 S.W.2d 12, 15 (1944); Mississippi River Fuel Corp. v. Smith, 164 S.W.2d 370, 377 (Mo. 1942); State ex rel. Spillers v. Johnston, 113 S.W. 1083, 1084 (Mo. 1908).
| Appeal Number | Parcel Number | Address |
| 18-11089 | 27G210285 | 309 E. Arlee Ave. |
| 18-11090 | 27G210274 | 311 E. Arlee Ave. |
| 18-11103 | 27G141141 | 108 E. Etta |
| 18-11111 | 27G432463 | 618 Lagro Ave |
| 18-11112 | 28G440533 | 9907 Linn Ave. |
| 18-11114 | 27G141912 | 108 Mann St. |
| 18-11117 | 28G440661 | 206 E Ripa Ave |
| 18-11118 | 28G440744 | 208 E Ripa Ave |
| 18-11119 | 28G440571 | 218 E Ripa Ave |
ORDER
The assessed valuation for the subject property as determined by the BOE for the subject tax day is SET ASIDE in part and AFFIRMED in part.
Complainants presented substantial and persuasive evidence establishing that the following subject properties are exempt from ad valorem taxation under Article X, Section 6, of the Missouri Constitution for tax year 2017-2018:
| Appeal Number | Parcel Number | Address |
| 18-11089 | 27G210285 | 309 E. Arlee Ave. |
| 18-11090 | 27G210274 | 311 E. Arlee Ave. |
| 18-11103 | 27G141141 | 108 E. Etta |
| 18-11111 | 27G432463 | 618 Lagro Ave |
| 18-11112 | 28G440533 | 9907 Linn Ave. |
| 18-11114 | 27G141912 | 108 Mann St. |
| 18-11117 | 28G440661 | 206 E Ripa Ave |
| 18-11118 | 28G440744 | 208 E Ripa Ave |
| 18-11119 | 28G440571 | 218 E Ripa Ave |
Complainants failed to present substantial and persuasive evidence establishing that the following subject properties are exempt from ad valorem taxation under Article X, Section 6, of the Missouri Constitution for tax year 2017-2018:
| Appeal Number | Parcel Number | Address |
| 18-11088 | 27G120562 | 229 E. Arlee Ave. |
| 18-11091 | 27G120993 | 9720 S. Broadway |
| 18-11092 | 27G120470 | 9800 S. Broadway |
| 18-11093 | 28G431843 | 9905 S. Broadway |
| 18-11094 | 27G120324 | 9806 S. Broadway |
| 18-11095 | 27G120283 | 9810 S. Broadway |
| 18-11096 | 27G120223 | 9814 S. Broadway |
| 18-11097 | 28G431834 | 9901 S. Broadway |
| 18-11098 | 28G432024 | 9929 S. Broadway |
| 18-11099 | 28G432101 | 9931 S. Broadway |
| 18-11100 | 27G141691 | 128 E. Cartwright |
| 18-11101 | 27G141710 | 143 E. Cartwright |
| 18-11102 | 27G120173 | 9820 Erie Dr. |
| 18-11104 | 27G141242 | 110 E. Etta |
| 18-11105 | 27G141307 | 143 E Etta |
| 18-11106 | 27G121152 | 143 E Felton Ave |
| 18-11107 | 27G120810 | 200 E Felton Ave |
| 18-11108 | 27G412036 | 9415 Gentry Ave. |
| 18-11109 | 27G410100 | 9502 Gentry Ave. |
| 18-11110 | 27G121662 | 9833 Joplin Ave |
| 18-11113 | 28G440506 | 9910 Linn Ave |
| 18-11115 | 27G230214 | 9626 Perrin Ave |
| 18-11116 | 28G440607 | 120 E Ripa |
| 18-11120 | 27G132213 | 9536 Gentry Ave. |
Application for Review
A party may file with the Commission an application for review of this decision within 30 days of the mailing date set forth in the Certificate of Service for this Decision. The application shall contain specific facts or law as grounds upon which it is claimed the decision is erroneous. The application must be in writing addressed to the State Tax Commission of Missouri, P.O. Box 146, Jefferson City, MO 65102-0146, and a copy of said application must be sent to each person at the address listed below in the certificate of service.
Failure to state specific facts or law upon which the application for review is based will result in summary denial. Section 138.432
Disputed Taxes
The Collector of St. Louis County, as well as the collectors of all affected political subdivisions therein, shall continue to hold the disputed taxes pending the possible filing of an Application for Review, unless said taxes have been disbursed pursuant to a court order under the provisions of Section 139.031.8
Any Finding of Fact which is a Conclusion of Law or Decision shall be so deemed. Any Decision which is a Finding of Fact or Conclusion of Law shall be so deemed.
SO ORDERED this 16th day of August, 2019.
STATE TAX COMMISSION OF MISSOURI
Maureen Monaghan
Chief Counsel
Certificate of Service
I hereby certify that a copy of the foregoing has been sent electronically or mailed postage prepaid this 16th day of August, 2019, to:
Complainants’ counsel, Ryan McCarty, rmccarty@polsinelli.com
Counsel for Respondent, Steve Robson, srobson@stlouisco.com
Assessor, stc-correspondence@stlouisco.com
County Collector, mdevore@stlouisco.com
Elaina McKee
Legal Coordinator
Contact Information for State Tax Commission:
Missouri State Tax Commission
301 W. High Street, Room 840
P.O. Box 146
Jefferson City, MO 65102-0146
573-751-2414
573-751-1341 Fax
[1] All statutory citations are to RSMo 2000, as amended