Kankakee Valley Post, Volume 17, Number 4, DeMotte, Jasper County, 13 December 1946 — HIGH COURT UPHOLDS 1937 TAX STATUTE [ARTICLE]

HIGH COURT UPHOLDS 1937 TAX STATUTE

Some Property of Churches, Schools and Lodges Are Held To Be Assessable Constitutionality of a 1937 statute which gives the state the right to tax property and income derived from property owned by a religious, educational or charitable holding company or foundation, but hot devoted exclusively to the organization’s purposes, was upheld by the Indiana Supreme Court yesterday. The case was appealed to the Supreme Court by the Grand Lodge Hall Association, Independent Order of Odd Fellows of Indiana, which filed suit in the Marion County Court to test the law’s legality in November, 1943. Three building in Indianapolis cited as examples of property taxable under the 1937 law were the Odd Fellow Building, English Hotel, which is owned by the English Hotel Foundation, and the Pythian Building. Though thousands of dollars worth of property will be returned to tax duplicates as a result of the decision, the exact amount was not known, J. R. Robertson, state tax board official said. Mrs. Mary J. Turk, chairman of the Marion County board of review, said that taxes have been collected on all such property in Marion County since Judge Cox’s decision was given. All real estate owned by religious, educational and chairtable foundations and holding companies and the income derived from it was made tax exempt by a 1921 state law. But the 1937 act amended this to provide that the exemption would not apply after March 1, 1944 unless the propperty be “occupied and used exclusively for such purposes and objects.” The decision was written by Judge Frank N. Richman.