1 N.Y.3d 406 (2004)
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A religious organization seeking a real property tax exemption for unimproved land under RPTL 420-a(3)(a) is not required to obtain a special use permit as a condition precedent to demonstrating good faith contemplation of using the property for religious purposes; however, the failure to apply for such a permit may be considered as a factor in determining good faith.
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Summary
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Legion of Christ, a religious organization, purchased unimproved land intending to develop it for religious activities. The Town of Mount Pleasant denied Legion’s application for a real property tax exemption under RPTL 420-a, arguing that Legion needed a special use permit before the exemption could be granted. The New York Court of Appeals reversed the lower courts’ decisions, holding that a special use permit is not a prerequisite for a tax exemption based on good faith contemplation of religious use. The case was remitted to the Appellate Division to determine whether the development of the property for tax-exempt purposes was, in fact, contemplated in good faith.
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Facts
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Legion of Christ, Inc., a Roman Catholic religious order, purchased a 168-acre parcel of unimproved land. Legion intended to develop the land into a campus-like environment for religious activities, including an outdoor chapel, rosary path, Stations of the Cross, and recreational areas. The property was located in a zoning district where churches were permitted as of right, but other religious activities required a special use permit. Legion applied for a real property tax exemption under RPTL 420-a without first obtaining a special use permit.
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Procedural History
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The Town Assessor denied Legion’s tax exemption application. The Board of Assessment Review upheld the Assessor’s decision. Legion filed a tax certiorari proceeding, which Supreme Court denied, granting summary judgment to the Town. The Appellate Division affirmed, reasoning that Legion’s intended use was illegal without a special use permit, barring the exemption. The Court of Appeals reversed and remitted the case to the Appellate Division to determine if Legion demonstrated “good faith contemplation”.
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Issue(s)
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Whether a religious organization must obtain a special use permit as a condition precedent to qualify for a real property tax exemption under RPTL 420-a (3)(a) based on the good faith contemplation of using unimproved property for religious purposes.
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Holding
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No, because a special use permit is not a mandatory prerequisite for a real property tax exemption under RPTL 420-a(3)(a). However, whether an applicant has applied for a special use permit is a factor to be considered in determining whether the applicant, in good faith, contemplates improving the property for its stated purpose.
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Court’s Reasoning
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The Court of Appeals reasoned that RPTL 420-a establishes a mandatory tax exemption for real property owned by nonprofit corporations organized and operated exclusively for religious purposes. For unimproved property, section 420-a(3)(a) allows an exemption if the construction of improvements is “in good faith contemplated.” The court held that requiring a special use permit as a precondition to the exemption was an overly narrow interpretation of the statute, as it added a requirement not explicitly stated in the law. The Court emphasized that while tax exemption statutes should be construed against the taxpayer, they should not be interpreted so narrowly as to defeat their purpose of encouraging religious institutions. Citing Matter of Yeshivath Shearith Hapletah v Assessor of Town of Fallsburg, 79 NY2d 244, 249 [1992], the court stated they should “encourage, foster and protect religious institutions as a public benefit”. The Court noted that the failure to apply for a special use permit could be a relevant factor when determining if the organization demonstrates