New York Botanical Garden v. Assessors of Town of Washington, 55 N.Y.2d 328 (1982)
When a property serves multiple purposes, some of which qualify for an absolute tax exemption and others a qualified exemption, and the municipality seeks to withdraw a previously granted tax exemption, the municipality bears the burden of proving that the property is primarily used for the qualifiedly exempt purpose.
Summary
The New York Botanical Garden sought a real property tax exemption for its Cary Arboretum in the Town of Washington. The town had previously granted the exemption but later revoked it, arguing the arboretum’s primary purpose was scientific research, which was taxable under a local law. The Court of Appeals held that the town failed to prove the arboretum was primarily used for scientific purposes. Because the arboretum served multiple exempt purposes, including education, conservation, and recreation, the town did not meet its burden, and the property remained tax-exempt. The court emphasized that the municipality bears the burden of proof when seeking to withdraw a previously granted tax exemption.
Facts
The New York Botanical Garden (NYBG) operates the Bronx Botanical Garden and the Cary Arboretum. The Cary Arboretum, consisting of 1,900 acres, was deeded to NYBG by the Mary Flagler Cary Charitable Trust. The deed mandated the property be used as an arboretum, including growing woody plants, ecological research, and public instruction. Approximately 800-900 acres were used for planting and monitoring trees and shrubs, another 900 acres maintained in a natural state for ecological studies with nature trails, and the remainder used for displaying the arboretum’s collection. The property hosted a library, plant science museum, and educational programs.
Procedural History
From 1973 to 1977, the Cary Arboretum was tax-exempt. In 1977, the Town of Washington enacted Local Law No. 3, taxing property used for scientific purposes. The town then restored the arboretum property to the tax roll, determining its primary purpose was scientific. NYBG commenced an Article 78 proceeding to have the property declared tax-exempt. Special Term dismissed the petition, but the Appellate Division reversed, holding the town failed to prove the arboretum was primarily used for scientific purposes. The town appealed to the New York Court of Appeals.
Issue(s)
Whether the Town of Washington met its burden of proving that the New York Botanical Garden was organized primarily for scientific purposes and that the Cary Arboretum was primarily used for such purposes, thereby justifying the withdrawal of a previously granted tax exemption.
Holding
No, because the Town of Washington failed to prove that the New York Botanical Garden was organized and the Cary Arboretum was used primarily for scientific purposes. Because the property served multiple exempt purposes, the withdrawal of the tax exemption was not justified.
Court’s Reasoning
The court emphasized that generally, the burden of proof lies with the taxpayer seeking a tax exemption. However, when a municipality seeks to withdraw a previously granted tax exemption under Real Property Tax Law § 420 (subd 1, par [b]), the municipality bears the burden of proving that the property is subject to taxation. The court noted that the NYBG’s charter described several purposes, including maintaining a botanical garden, advancing botanical science, exhibiting horticulture, and providing public instruction and recreation. The court found the town failed to demonstrate that a scientific purpose predominated, despite NYBG’s own declarations of its scientific activities.
The court distinguished the case from situations where an organization’s primary purpose could be definitively classified as scientific. Citing Mohonk Trust v. Board of Assessors of Town of Gardiner, the court noted that environmental and conservation purposes are encompassed within broader categories that afford absolute exemption. The court found NYBG’s purposes strikingly similar to those of the Mohonk Trust and the North Manursing Wildlife Sanctuary, both of which had been granted tax exemptions. The court found the arboretum’s emphasis on preservation and environmental concerns provided a sufficient basis for finding its primary purpose to be absolutely exempt.
The court also addressed the town’s argument regarding restrictions on public access, stating that to qualify for tax exemption, the arboretum must be “necessary to the public good” and “open to and enjoyed by the public” (Mohonk Trust v Board of Assessors of Town of Gardiner, 47 NY2d 476, 484). However, the court found that the restricted access was consistent with the purposes for which the land was being used and did not deprive it of a public purpose. The court held that the Cary Arboretum’s use accomplished several exempt purposes, including educational, charitable, and moral improvement purposes, and should fall within the broader categories of absolutely exempt uses.