Justia Tax Law Opinion Summaries

Mountain View Community School, Inc. appealed a trial court order that rejected its request for a property tax exemption for "lands owned or leased by colleges, academies or other public schools" under state law. Mountain View contended the court misinterpreted the law in denying the requested exemption. For a number of years, Mountain View operated a private nonsectarian school for students from preschool through eighth grade at two separate locations in the City of Rutland. Mountain View's only use of the properties was as a school. While maintaining that it was statutorily exempt from the payment of property taxes, Mountain View nevertheless paid them under protest from 1994 through 2007. When the school's assessed value increased dramatically in 2006 and 2007, however, it sought an exemption. The City declined to grant the exemption, and in response, Mountain View filed suit for declaratory relief and an injunction to prevent a threatened tax sale. Upon review, the Supreme Court found that the lower the court mistakenly conflated the "public use" and "public school" exemptions in the statute, seeking to determine whether the school served "an indefinite class" under the former when, in fact, Mountain View was relying on the latter. The Court reversed the decision of the lower court.