And here are the conclusions of the State of Illinois (pp. 44-46):
In its analysis of the use of the subject properties, the court found that the applicant was a religious organization; however, the court went on to state that the second prong of the test for a property tax exemption is whether the use of the property complied with the necessary section of the statutes. This does not violate an individuals or organizations rights to practice religion as it neither assesses the inherent validity of the belief structure nor determines whether the particular conduct conforms to the standards or purposes of a religious group. Id. at 772-774.
Similarly, in this case, an analysis of applicant's use of the property is necessary. The case is also not about whether or not what the applicant is doing is good for people. No one disputes that family oriented programming is positive and that applicants programming is family oriented and includes programming intended to further physically healthy lifestyles. However, contrary to applicants assertions, these types of programming conducted on a property do not, ipso facto, result in a tax exemption for that property.
Danny and Linda Shelton have control of applicant. They regulate the amount they are paid. They have control of programming. They regulate all contracts. Applicant uses this property to produce television programs, to sell equipment, radio and television time, and to sell merchandise, and, absent evidence to the contrary, sales are made at commercially competitive prices.
While a significant portion of the materials may incidentally relate to religious topics, applicant is a radio and television/satellite broadcasting, sales, and publishing corporation that sells, markets and/or otherwise distributes its products to outside entities or individuals. Outside entities are attracted to the content of applicants programs that are consistent with the tenets of the Seventh-day Adventist Church, yet the existence of this religiously-oriented client base does not impute upon applicant the characterization that applicant is, itself, a religious institution using the subject property in furtherance of religious or charitable activities.
Applicant filed a Motion For Leave To File Instanter requesting that I consider two Department of Revenue administrative decisions, Basilean Films Foundation, Inc. v. The Department of Revenue of the State of Illinois, Docket No. 93-22-344 and Muhammads Holy Temple of Islam v. The Department of Revenue of the State of Illinois, Docket No. 01-PT-0061. The motion was granted by the order dated July 28, 2003. In Basilean Films, a religious and
charitable organization owned a house and used a portion of it for writing, producing, and editing religious video tapes, audio tapes, and books for Christian organizations world-wide. Those sections of the house qualified for a property tax exemption. The areas of the house used primarily for residential purposes did not qualify for exemption.
In Muhammads Holy Temple of Islam, an Islamic organization owned a three-story building that was used for training in the Islamic religion. At hearing, Muhammads Holy Temple established that it was, in fact, a religious Islamic organization and that the training was an essential part of its religious purposes.
The Department, as shown by these cases, grants exemptions for religious organizations that use property for exempt religious purposes and not with a view to profit. As discussed above, applicant is not only not a religious organization, but, more importantly, does not primarily use the property for religious purposes without a view to profit.
For the aforementioned reasons it is recommended that Franklin County Parcel Index No. 174-116-11 remain on the tax rolls for the 2000 and 2001 assessment years and be assessed to the applicant, the owner thereof, except for the two pastors offices, each measuring 14 feet by 18 feet, on the second floor of the administrative production center building, and a corresponding amount of land. That area, I recommend, be granted a property tax exemption as used for religious purposes without a view to profit.
Respectfully Submitted,
Barbara S. Rowe
Administrative Law Judge
January 28, 2004