Agenda - 06-05-2018 8-d - Refund Request – Sports Endeavors, Inc.

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REDEVELOPMENT COM'N OF HIGH POINT v. Guilford County, 164 S.E.2d 476, 274... Page 4 of 6 17 "(W)e do not think the exemption in the Constitution embraces the interest of the State in business enterprises, but applies to the property of the State held for State purposes." In the case of Town of Benson v. Johnston County, supra, the plaintiff, a municipality, acquired certain property within its corporate limits by tax foreclosure. After acquisition of the property, the municipality rented the property and received rents therefrom. The county levied an ad valorem tax against the property, and the municipality contended that the property was exempt from taxation from the date the municipality acquired the title, relying *480 on Article V, Section 5 of the North Carolina Constitution, and N.C.Code §§ 7880 (2), (177) (Michie 1935). The Court held that the property was liable for county taxes, since it was not used by the city for governmental purposes, and stated: "We think that the question involved in this controversy was settled in Board of Financial Control v. Henderson County, 208 N.C. 569 (/ opinion/ 3903061 /boa rd -of- financial- control- v-henderson- county /), 571 -572, 181 S.E. 636 (/ opinion/ 3903061 /board -of- financial- control- v- henderson- county /), where it is said: 'So the question in this controversy narrows itself down: Can the City of Asheville a municipal corporation, acquire business property in another county, hold and rent it without the payment of taxes in that county? We think not. The property is not held or used for any governmental or necessary public purpose, but for purely business purposes. "' Quoting with approval from the case of Village of Watkins Glen v. Hager, 140 Misc. 816, 252 N.Y.S. 146, the Court stated: "'It is manifest there are two classes of property of municipal corporation exempt from taxation. * * * First is that class of property held for a public use, in that it is used in connection with the operation of the functions of government, such as municipal buildings; second, that class of property held for a public use, in that it is for the benefit of the people for their free use and enjoyment, such as parks, playgrounds, athletic fields, art museums, and public uses of a similar nature. "'When the municipal corporation, however, acquires and holds property without devoting the same to either class of purpose, it is simply held without use. The fact that it is to a certain extent used for the purpose of producing income, when there is no definite plan evolved for its use by or for the public, cannot reasonably be said to constitute holding for a public use. * * *' (Emphasis ours) https: / /www.courtlistener.com/ opinion / 1246924 /redevelopment- comn -of -high- point- v- guil... 5/18/2018