Swedenborg Foundation, Inc. v. Lewisohn, 40 N.Y.2d 87 (1976)
An organization whose primary purpose is disseminating the writings and views of a religious figure, even for benevolent or educational purposes, is not necessarily entitled to an unqualified real property tax exemption under New York law if it is not directly associated with an organized religious denomination or recognized educational institution.
Summary
The Swedenborg Foundation sought a real property tax exemption, arguing it was organized exclusively for religious, charitable, or educational purposes. The Foundation disseminated the religious and philosophical writings of Emanuel Swedenborg. The court held that the Foundation’s primary purpose was the dissemination of Swedenborg’s views, which, while commendable, did not qualify it for an unqualified tax exemption under Real Property Tax Law § 421(1)(a). The court reasoned that the Foundation was not directly associated with an organized religion or a recognized educational institution, and its activities were broader than traditional religious or educational activities.
Facts
The Swedenborg Foundation, originally the American Swedenborg Printing & Publishing Society, was incorporated in 1850. Its purpose was to print, publish, and circulate the theological works of Emanuel Swedenborg. It disseminated Swedenborg’s writings, commentaries, and related works, often at or below cost, to various institutions and individuals. The Foundation also employed outreach distribution, provided talking books, conducted essay contests, sponsored seminars, and maintained a library.
Procedural History
The Foundation’s property was initially exempt from real property tax, but the City of New York revoked the exemption in 1972. The Foundation sued to restore the exemption. Special Term ruled in favor of the Foundation, but the Appellate Division reversed. The New York Court of Appeals then reviewed the Appellate Division’s decision.
Issue(s)
Whether the Swedenborg Foundation was organized and conducted exclusively for religious, charitable, or educational purposes, thereby qualifying it for an unqualified real property tax exemption under Real Property Tax Law § 421(1)(a).
Holding
No, because the foundation’s primary purpose was to disseminate the writings and views of Emanuel Swedenborg, which does not qualify as a religious or educational purpose under the statute’s contemplation, and while aspects of the Foundation’s activities may be characterized as charitable, such purposes are not its principal purpose.
Court’s Reasoning
The court reasoned that the Foundation’s primary purpose was not religious because it was not directly associated with an organized religious denomination or an organization furthering a recognized religion. The court distinguished the case from Matter of Watchtower Bible Soc. & Tract of N. Y. v Lewisohn, where the organization was closely tied to a specific religion. Here, the connection to the Church of The New Jerusalem was incidental.
Regarding education, the court stated that “education, at least within the contemplation of subdivision 1 of section 421, refers to the development of faculties and powers and the expansion of knowledge by teaching, instruction or schooling.” The Foundation’s activities were deemed the broader process of communicating facts and ideas rather than education. The court noted that the Foundation was not affiliated with a recognized educational institution, nor did its activities form part of an organized instructional program.
The court also rejected the argument that the Foundation was exclusively charitable or for moral/mental improvement, stating that these were not its principal purposes. The court emphasized that “public benefit is not the test of qualification for exemption”.
The court further clarified that favorable determinations from the U.S. Department of the Treasury regarding tax-exempt status for other purposes did not affect the outcome. Finally, the court rejected arguments based on equal protection and due process, citing Matter of American Bible Soc. v Lewisohn.