Watchtower Bible & Tract Society v. Lewisohn, 35 N.Y.2d 92 (1974)
A religious organization’s primary activities, such as preaching and distributing religious literature, qualify as religious purposes under New York’s Real Property Tax Law, entitling it to tax exemptions even if it also engages in bible and tract distribution.
Summary
The New York Court of Appeals addressed whether the Watchtower Bible and Tract Society, the governing body of Jehovah’s Witnesses, qualified for a tax exemption under New York law. The City of New York argued that the Society was primarily a bible and tract organization, not a religious one, and thus subject to taxation under a local law that terminated exemptions for certain not-for-profit organizations. The Court held that the Society was organized and conducted exclusively for religious purposes, based on its core activities of preaching and distributing religious materials, thereby reaffirming its tax-exempt status. The Court emphasized the conjunctive nature of the statute, requiring the taxing authority to prove the entity was not religious to deny the exemption.
Facts
Watchtower Bible and Tract Society is the governing body of Jehovah’s Witnesses, a recognized religious denomination. The Society’s activities include publishing religious literature and supervising local congregations, which are assigned missionary territories. Members engage in house-to-house preaching and distribute religious materials produced by the Society. The City of New York attempted to remove the Society’s properties from the tax rolls, arguing it was primarily a bible and tract society, not a religious organization under the meaning of Real Property Tax Law § 421 and Local Law No. 46.
Procedural History
The Society initiated a proceeding challenging the City’s decision to remove its properties from the tax rolls. The lower courts ruled in favor of the Society, directing the City to restore the tax exemption. The City appealed to the New York Court of Appeals.
Issue(s)
Whether the Watchtower Bible and Tract Society is organized and conducted exclusively for religious purposes, and therefore exempt from taxation under New York Real Property Tax Law § 421 and Local Law No. 46 of the City of New York.
Holding
Yes, because the Society’s primary activities, such as preaching and distributing religious literature, constitute religious purposes within the meaning of the statute. To deny the exemption, the taxing authority must prove the entity is not religious, a burden the City failed to meet.
Court’s Reasoning
The Court focused on the language of Real Property Tax Law § 421 and Local Law No. 46, which stated that to lose the tax exemption, a corporation must not be organized or conducted exclusively for religious purposes, but must be organized or conducted exclusively for bible, tract, or missionary purposes. The court emphasized the word ‘but’, stating that both conditions must be met. The court reasoned that the Society’s activities, particularly house-to-house preaching and distribution of religious literature, are integral to its religious mission and are considered religious activities. The court cited numerous cases supporting the view that Jehovah’s Witnesses’ preaching is a religious activity. The Court noted, “The great weight of judicial authority has uniformly held that the preaching activity of Jehovah’s Witnesses from house to house is done as ministers of the gospel and it is held that it is religious preaching.” The Court distinguished this case from Association of Bar of City of N. Y. v. Lewisohn, where the taxing authority successfully demonstrated that the organizations in question were neither charitable nor educational. The court also addressed the City’s argument that Article 7 was the exclusive remedy for challenging a tax assessment, but the court determined that the thrust of the action was to reinstate a previous determination that had been in place regarding tax exemption. Therefore, the present Article 78 was deemed appropriate to obtain the relief sought.