Tappan' Washington Memorial Corp. v. Margetts
Tappan' Washington Memorial Corp. v. Margetts
Opinion of the Court
The opinion of the court was delivered by
The appellant Tappan Washington Memorial Corporation was organized under New York law and received a charter to operate the DeWint House in Rock-land County, New York, and maintain an historical museum in connection therewith. The DeWint House was the scene of significant events in American Revolutionary history and was occupied by General Washington in 1780 and thereafter. In accordance with its charter requirements the appellant has maintained the property as a public museum accessible to the public without charge. In 1949 the decedent, a resident of Passaic County, devised property in New Jersey to the appellant. The Transfer Inheritance Tax Bureau of the Division of Taxation assessed this property at full rate (R. S. 54:34-2(d)) rejecting the appellant’s contention that it was entitled either to total exemption as an “educational institution” under R. 8. 54:34r-4(d) or to partial exemption as a “benevolent or charitable” organization under R..8. 54:34-2(b). The present appeal is from this action.
Courts throughout the country have recognized that while libraries and museums devoted to public use are not strictly places of instruction such as schools, they, nevertheless, serve important educational purposes and may be deemed to be charities within tax exemption statutes. See Molly Varnum Chapter, D. A. R., v. City of Lowell, 204 Mass. 487, 90 N. E. 893 (1910); Mitchell v. Reeves, 123 Conn. 549, 196 A. 785 (1938); 10 Am. Jur., p. 632; 14 C. J. S. 446. It is true that in In re Vineland Historical and Antiquarian Society, 66 N. J. Eq. 291 (Prerog. 1904); affirmed, 67 N. J. Eq. 730 (E. & A. 1905), and Pitney v. Bugbee, 98 N. J. L. 116 (Sup. 1922); affirmed, 98 N. J. L. 889 (E. & A. 1923), bequests to the Vineland Historical and Antiquarian Society 'and the New Jersey Historical Society were held not to be within the tax exemption provisions applicable to charities generally. Those decisions, however, were expressly rested
In the light of the foregoing we find little difficulty in reaching the conclusion that the appellant was organized and operated for “benevolent or charitable” purposes within the contemplation of B. S. 54:34^3(b). Its provisional charter, granted in 1934 by the Education Department of! the University of the State of New York, expressly set forth that it was being incorporated as an educational institution for the specific purpose of operating the DeWint House and maintaining in connection therewith “a museum of objects and memorabilia connected with or descriptive of the Colonial and Eevolutionary periods and access shall be permitted to the public at such reasonable times and under such reasonable regulations as the trustees may determine.” The provisional charter further stated that an absolute charter would be granted if, within five years, the corporation acquired sufficient resources and satisfied the Eegents of the University that it was “maintaining an institution of educational usefulness and character.” In 1941 an absolute charter was issued and the appellant has at all times met the terms of its charter
The- more troublesome question before us is whether the appellant is entitled to total exemption as an “educational institution” within the contemplation of B. 8. 54:34^4(d). Here, unlike the partial exemption in B. S. 54:34-2(b), the issue is not simply whether a historical museum devoted to public use is broadly educational within the comprehensive statutory grouping of “benevolent or charitable” organizations for partial exemption. On the contrary, the issue is whether it falls within the limited grouping contemplated by our Legislature in its specific designation of “educational institutions” for total exemption. In its primary sense the term “educational institutions” would be taken to refer to universities and other schools where students are taught by instructors; presumably that would be its ordinary meaning in common parlance. See New Britain Trust Co. v. Stoddard, 120 Conn. 123, 179 A. 642 (1935). On the other hand, a legislative body might use the term in its broader sense contemplating institutions which serve an educational purpose without regard to the teacher-student relationship. United States v. Proprietors of Social Law Library, 102 P. 2d 481 (1 Cir. 1939). Accordingly, we are called upon to interpret the term as actually used in B. S. 54:34-4(d), in the light of its history, purpose and context. Ablondi v. Board of Review, 8 N. J. Super. 71, 75 (App. Div. 1950). Cf. Imbrie v. Marsh, 3 N. J. 578 (1950); Delaware, Lackawanna and Western Railroad Co. v. Division of Tax Appeals, 2 N. J. Super. 93, 98 (App. Div. 1949); affirmed, 3 N. J. 27 (1949); app. dism., 338 U. S. 946 (1950).
Under earlier statutes transfers to churches, hospitals and orphan asylums, public libraries, Bible and tract societies, and religious, benevolent and charitable institutions were totally exempt from our transfer inheritance tax provisions. See P. L. 1909, c. 228; P. L. 1912, c. 226; P. L. 1914, cc.
However, we need not pursue this matter further since we have reached the conclusion that, whether or not the introducer’s statement be regarded, the terms of P. L. 1948, c. 268, did not, in their ordinary signification (Hackensack Trust Co. v. Hackensack, 116 N. J. L. 343, 346 (Sup. 1936)), afford total exemption to historical museums which aTe in no wise akin to traditional educational institutions such as universities and other schools. Indeed, if the appellant’s suggestion to the contrary were accepted the consequences under our existing statutory enactments would appear to he incongruous. Churches, hospitals, religious societies and public libraries would receive only-partial exemption under the specific terms of B. S. 54:34-2(b), whereas historical museums would receive total exemption under the general terms of B. S. 54:34r-4(d). Nowhere do we find any evidence of legislative intent to prefer historical museums or societies over public libraries and the others. It may be noted that R. S. 54:4-3.6 which provides for exemptions from property taxation, in its early specific enumerations, refers to buildings used for public libraries generally but only to buildings used for historical societies, associations or exhibitions when owned by the State, county or any political subdivision thereof, and
Considering all of the pertinent legislative enactments now in force (cf. In re Huyler, 133 N. J. L. 171, 173 (Sup. 3 945)) we have determined that an historical museum such as that operated by the appellant, devoted to public education in accordance with its charter mandate, may be deemed to be a benevolent or charitable organization within R. S. 54:34— 2(b) but may not be deemed to be an educational institution within R. S. 54:34-4(d). Accordingly, the transfer to the appellant should have been assessed at the rate provided in R. S. 54:34-2(b).
The assessment is set aside and the cause is remanded to the Division of Taxation for further proceedings in accordance with this opinion.
Reference
- Full Case Name
- TAPPAN WASHINGTON MEMORIAL CORPORATION, A NEW YORK CORPORATION v. WALTER T. MARGETTS, STATE TREASURER, ACTING AS DIRECTOR, DIVISION OF TAXATION, DEPARTMENT OF THE TREASURY
- Cited By
- 1 case
- Status
- Published