Opinion Number

Dear Ms. Core:

You have requested the opinion of this office regarding the ad valorem tax status of property owned by Catholic Faith in Action ("CFA"), an organization which owns property in St. Tammany Parish.

According to your correspondence, CFA, through Mr. Robert and Mrs. Penny Lord, have requested a tax exemption as a non-profit corporation for religious purposes of property (the "Property") located at 112 Monticello Court, Pearl River, in St. Tammany Parish. You have advised that the Lords reside at the property, as well as conduct operations for the reproduction of videos and/or books (the subject matter of which is religious) which videos and/or books are sold and distributed worldwide. You further advised that the Lords are "not organized or affiliated with any church, neither directly or indirectly". Furthermore, you have been advised by the Catholic Diocese of New Orleans that CFA "is not listed in the National Catholic Directory and thus is not entitled to the tax exempt status afforded to the catholic church by the Internal Revenue Service."

The determination of whether property is subject to an ad valorem tax exemption is a factual determination which is the responsibility of the various tax assessors, subject to review by the Louisiana Tax Commission. Ultimately, such decisions are subject to review by the courts. La. Const. Art. VII, Sec. 18; R.S. 47:1952. In accord: Atty. Gen. Ops. Nos. 95-60, 93-632.

In making a determination regarding a particular exemption request, assessing authorities may examine the actual activities of the organization in question, the use of the property under consideration and the purpose clause found in the organization's charter. Atty. Gen. Op. No. 95-60. It appears that with regard to the property in question, proper regard has been given by your office and the Tax Commission to these items.

As you are aware, the ad valorem tax exemption sought on CFA's behalf is provided for at La. Const. Art. VII, Sec. 21, which pertinently provides:

"In addition to the homestead exemption provided for in Section 20 of this Article, the following property and no other shall be exempt from ad valorem taxation.

* * *

(B)(1)(a) Property owned by a non-profit corporation or association, organized and operated exclusively
for religious . . . purposes, no part of the net earnings of which inure to the benefit of any private shareholder or member thereof and which is declared to be exempt from federal or state income tax; and

* * *

None of the property listed in Paragraph (B) shall be exempt if owned, operated, leased, or used for commercial purposes unrelated to the exempt purposes of the association." (Emphasis supplies)

This office has consistently opined that in order to qualify for an exemption under Art. VII, Sec. 21(B), the property must meet all four of the basic requirements of that constitutional provision, to wit: (1) The organization must be a nonprofit corporation or association organized exclusively for one of the designated purposes, (2) No part of the net earnings inure to the benefit of any stockholder or member thereof, (3) Said nonprofit corporation or association must be exempt from federal or state income tax, and (4) The property is not owned, operated, leased or used for commercial purposes unrelated to the exempt purposes of the corporation or association. Atty. Gen. Ops. Nos. 93-488, 86-529.

Due consideration must also be given to the jurisprudence of this state, which has consistently held that exemptions from taxation must be strictly construed against the person(s) claiming the exemption. Mattingly v. Vial, 190 So. 313 (1939); Ruston Hospitalv. Riser, 191 So.2d 665 (La.App. 2nd Cir. 1966).

We have been provided with a copy of the Louisiana Tax Commission's letter of April 11, 1995, wherein CFA's request for exemption as a nonprofit organization for religious purposes was found "inapplicable and denied" (copy attached). The Tax Commission, along with your office, has apparently done an extensive review of CFA's application and the facts and circumstances pertaining to that application. This office defers to the Tax Commission's decision in this regard, and finds that determination to be in accord with the legal authorities cited herein.

We trust the foregoing adequately addresses your concerns. Should you need assistance with other areas of the law, please do not hesitate to contact us.

Yours very truly,

RICHARD P. IEYOUB Attorney General

BY: _________________________ JEANNE-MARIE ZERINGUE BARHAM Assistant Attorney General

April 11, 1995

RE: MR. ROBERT AND MRS. PENNY LORD INDIVIDUALLY AND D/B/A CATHOLIC FAITH IN ACTION

MR. ADAM CHASE, ATTORNEY Adams and Johnston Law Corporation Vectra Bank Building 1919 14th Street, Suite 609 Boulder, Colorado 80302

Dear Mr. Chase:

The Louisiana Tax Commission (LTC) has diligently reviewed the dual ad valorem applications of: (1), Mr. Robert and Mrs. Penny Lord Residential Homestead Exemption (Article VII, Section 20(A)(1) and (2) the Nonprofit corporation for Religious Purposes of Mr. Robert and Mrs. Penny Lord d/b/a Catholic Faith In Action; which are both located at 112 Monticello Court, Pearl River, St. Tammany Parish, Louisiana 70452.

On April 4, 1995, a physical inspection of the above referenced property was done by myself, Executive Secretary, on behalf of the LTC and Hon. Assessor Patricia Schwartz Core, St. Tammany Parish, in the presence of Mr. Robert and Mrs. Penny Lord and Mr. Norm Pizza an attorney located in New Orleans. At that time the Lord's verbally advised that they had sold their properties located in the State of California and were now residing and operating at the referenced Louisiana address.

The 1974 Constitution provides for Homestead Exemption in Article VII, Section 20(1)(A) and is limited to one bona fide homestead exemption. Citation is excerpted from Attorney General Opinion No. 92-143, March 26, 1992, "Only one homestead exemption is allowed per family and, thus, owners who were not permanent residents of . . . . area could not be granted homestead exemption if they were claiming exemption on their permanent residences." Currently and since 1979, Mr. and Mrs. Lord enjoy homestead exemption on their Ventura County, California residence located at: 5253 Sealane, Post Office Box 5675, Oxnard, California 93031. Therefore, the Homestead (Residential) Exemption applied for Louisiana is inapplicable and denied.

Addressing the Nonprofit religious property exemption request, both the 1974 Louisiana Constitution (Article VII, Section 21 (B)(1)(a)) and the United States Internal Revenue Service (501 (C) (3) Code) require that the property in question must be "organized and operated exclusively for religious purposes". And, as cited in the LTC prior opinion of December 13, 1994, Louisiana does not allow exemption on any property "if owned, operated, leased, or used for commercial purposes unrelated to the exempt purposes of the corporation or association".

Section II of the Catholic Faith In Action Articles of Incorporation, cites the following purpose:

Purpose. The purpose of the corporation is a religious corporation and is not organized for the private gain of any person. It is organized under the Nonprofit Religious Corporation Law, primarily for religious purposes. (Underlined for emphasis as primarily vs exclusively.)

The 1974 Constitutional Convention transcript relative to the intent of law regarding the "religious" and "nonprofit organizations" are explicitly found in the 71st, 72nd, and 73rd Day Proceedings; which provide for the religious exemption for"church or church related properties". Enclosed is an official letter by the Catholic Church from the Archdiocese of New Orleans that has Catholic religious jurisprudence over the St. Tammany Parish area, in which the said Diocese states: "the organization `Catholic Faith in Action' is not listed in the National Catholic Directory and thus is not entitled to the tax exempt status afforded to the catholic church by the Internal Revenue Service". In conjunction with this statement, the Lord's verbally admitted their non affiliation with the Catholic Church during the said April 4, 1995, property inspection. Therefore, the nonprofit organization for religious purposes request is found inapplicable and denied.

Thanking you for your attention, I remain,

Sincerely,

Ann R. Laurence Executive Secretary

May 8, 1995

RE: 112 Monticello Court Pearl River, Louisiana 70452

HON. ASSESSOR PATRICIA S. CORE Parish of St. Tammany Post Office Drawer 3200 Covington, Louisiana 70434

Dear Assessor Core:

The Louisiana Tax Commission has received a letter from Chief Deputy Assessor-Services Daryl R. Brown, County of Ventura, California, dated April 27, 1995 (copy enclosed), advising and confirming that the Robert Lord having homestead exemption at 5253 Sealane Way, Oxnard, California, is in fact a different Robert Lord, attested by social security numbers of both Robert Lords. In addition, the Ventura County Assessor's Office advises that Robert and Penny Lord did have homestead exemption on their residence located at 1655 Hawksway Court, Westlake Village, Ventura County, California, until June 4, 1991, at which time the County Recorder's documents indicate that the Hawksway Court residence was sold and there currently exists no homestead exemption on file in the said county assessor's records for Robert and Penny Lord.

Therefore, based upon this information, Robert and Penny Lord are found to be entitled to a residential homestead exemption, pursuant to the 1974 Constitution, Article VII, Section 20(A)(1), for their owner occupied residence located at 112 Monticello Court, Pearl River, Louisiana 70452.

Thanking you for your attention and assistance in correcting the St. Tammany Parish homestead exemption on behalf of Robert and Penny Lord, I remain,

Sincerely,

Ann R. Laurence Executive Secretary