New York Law Review

Watchtower Bible and Tract Society v. Lewisohn, 35 N.Y.2d 92 (1974): Tax Exemption for Religious Organizations

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The New York Law Review

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35 N.Y.2d 92 (1974)

To lose tax exemption under Real Property Tax Law §421 and NYC Local Law No. 46, a religious organization’s property must be proven to be both not exclusively religious AND exclusively for bible, tract, or missionary purposes.

Summary

This case concerns the tax-exempt status of properties owned by the Watchtower Bible and Tract Society, the governing body of Jehovah’s Witnesses, in New York City. The city attempted to revoke the tax exemption under a new law, arguing that the society was primarily a publishing organization rather than a religious one. The court held that to revoke the exemption, the city had to prove the society was *not* exclusively religious and *was* exclusively for bible and tract purposes, a burden the city failed to meet. The court emphasized the society’s religious activities, including missionary work and the dissemination of religious literature, affirming the lower court’s decision to maintain the tax exemption.

Facts

  • Watchtower Bible and Tract Society is the governing body of Jehovah’s Witnesses.
  • The Society was organized as a membership corporation for religious purposes in 1909.
  • Jehovah’s Witnesses engage in extensive house-to-house preaching and distribute religious literature.
  • The City of New York sought to remove the Society’s properties from the tax rolls under Real Property Tax Law §421 and Local Law No. 46.
  • The City argued that the Society’s activities were primarily related to publishing and distributing literature, not exclusively religious.
  • The Society claimed it was a religious organization entitled to a tax exemption.

Procedural History

The lower courts ruled in favor of the Watchtower Bible and Tract Society, directing the City to maintain the tax exemption. The City appealed to the New York Court of Appeals.

Issue(s)

Whether the Watchtower Bible and Tract Society should continue to receive tax exemption for its properties under Real Property Tax Law §421 and Local Law No. 46, considering whether the Society is organized and conducted exclusively for religious purposes.

Holding

Yes, because the City failed to prove that the Society was not exclusively religious in its organization and activities.

Court’s Reasoning

The court interpreted Real Property Tax Law §421 and Local Law No. 46 strictly. To revoke the tax exemption, the taxing authority had to prove *both* that the organization was not organized or conducted exclusively for religious purposes, *and* that it was organized or conducted exclusively for bible, tract, missionary purposes. The court found that the City failed to prove the first element. The court emphasized that the Watchtower Society is the governing body of a recognized religious denomination, Jehovah’s Witnesses. The court cited numerous cases recognizing the religious nature of Jehovah’s Witnesses’ activities, particularly their house-to-house preaching. Quoting prior decisions, the court highlighted that this activity is considered religious preaching. The court distinguished this case from Matter of Association of Bar of City of N.Y. v. Lewisohn, where the taxing authority successfully demonstrated that the organizations in question were neither exclusively charitable nor educational. The court emphasized the importance of the conjunctive phrasing of the statute. “Thus, in our view, to succeed in establishing the taxable status of real property owned by Watchtower Bible and Tract Society of New York, Inc., under these provisions the taxing authority must prove not only that the corporate owner *is* organized exclusively for bible and tract purposes, but as well that it *is not* organized or conducted exclusively for religious purposes.” The court explicitly avoided ruling on the constitutionality of the law, deciding the case on statutory interpretation grounds. The court also rejected the city’s argument that an Article 7 proceeding was the exclusive remedy. This case illustrates the importance of strictly construing tax exemption statutes and highlights the judicial recognition of Jehovah’s Witnesses’ activities as religious in nature.

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