New York Botanical Garden v. Assessors of Washington

OPINION OF THE COURT

In this proceeding, petitioner seeks to have certain of its real property declared tax exempt. We agree with the Appellate Division that the taxing authority has failed to prove that petitioner is not organized or conducted primarily for exempt purposes or that the subject property is not used primarily for exempt purposes. We therefore hold that petitioner is entitled to the real property tax exemption sought for this property.

I

Petitioner, the New York Botanical Garden, was organized by a special act of the Legislature (L 1891, ch 285).

Petitioner carries out these purposes at both the Bronx Botanical Garden (located in Bronx Park) and the Cary Arboretum (located primarily in the Town of Washington in Dutchess County). The tax exempt status of so much of the land constituting the Cary Arboretum as is located in the Town of Washington is the basis for the present controversy.

The Bronx Botanical Garden is located on property owned by New York City, although petitioner has constructed some of the buildings and bears a large part of the cost of maintaining them. Activities conducted at Bronx Park by petitioner include the display of a large horticultural collection for public viewing, tours, informal lectures, maintenance of a plant specimen museum and a botanical and horticultural library. In addition, a variety of educational programs are carried out, including continuing education courses for adults, vocational training, a formal two-year horticultural training program, as well as college level courses and seminars, for which credit is available from cooperating universities. Research is also performed at the Bronx Garden, largely pursuant to Federal grants, the results of which are made available to the public.

The Cary Arboretum consists of 1,900 acres of real property, 1,640 of which are located in the Town of Washington. Most of this property was deeded to petitioner by the trustees of the Mary Flagler Cary Charitable Trust, under a will provision permitting the trustees to convey the property to any “charitable organizatioii which shall be engaged in the conservation, maintenance and preservation of natural resources”. Petitioner is required, by the

Approximately 800-900 acres of the real property are used for the planting and monitoring of a collection of trees and shrubs, many of which are not indigenous to the area. This area is open to the public, subject to supervision and regulation deemed necessary to protect and preserve its character. Another 900 acres are being kept in a natural state to facilitate ecological studies. This area contains three nature trails, open to the public during daylight hours, subject only to the requirement of registering for such use. The remainder of the property is used for a display of the arboretum’s collection, and is open to the public on a daily basis.

In addition to the general instructional and recreational uses of the property, a library and plant science museum are located on the grounds, both of which are accessible to the public. Numerous educational programs have been established in collaboration with high schools, colleges and universities. Persons enrolled in the petitioner’s School of Horticulture receive about half of their instruction at the arboretum. Research activities are also conducted at the arboretum facilities.

From 1973, when the arboretum lands were acquired by petitioner, until 1977, the property was treated as exempt from real property taxation, pursuant to the provisions of subdivision 1 of then section 421 of the Real Property Tax Law (renum § 420 by L 1981, ch 105). Under this statutory scheme, an exemption afforded the real property of a nonprofit organization might be either absolute or qualified. An absolute exemption is granted for property owned by a corporation or association organized exclusively for religious, charitable, hospital, educational, moral or mental improvement or cemetery purposes or more than one such purpose, where the property is used for one or more of

In 1977, the Town of Washington enacted Local Law No. 3, which, to the extent here relevant, exercises its power under the Real Property Tax Law to tax property used for scientific purposes. Acting under this local law, the arboretum property was restored to the tax roll, as the town assessors determined that the primary purpose of petitioner and the primary use of the arboretum were scientific and research-oriented.

Petitioner commenced this article 78 proceeding to have the arboretum property declared tax exempt. Special Term held that petitioner had not demonstrated its entitlement to a tax exemption and dismissed the petition. The Appellate Division, taking a different view of which party had the burden of proof, reversed and held that the town had failed to prove both that petitioner is organized for scientific purposes and that the arboretum was used for such purposes. We agree that the burden of proof was on the town and that it failed to sustain that burden in this proceeding. We therefore affirm the order of the Appellate Division granting the petition.

Generally, the burden of proof lies with the taxpayer who is seeking to have real property declared tax exempt (see People ex rel. Watchtower Bible & Tract Soc. v Haring, 8 NY2d 350 ; Matter of Pace Coll. v Boyland, 11 Misc 2d 387 , affd 4 AD2d 855 , revd on other grounds 4 NY2d 528 ). However, under the circumstances presented here, in which the municipality, pursuant to its power under section 420 (subd 1, par [b]), is seeking to withdraw a previously granted tax exemption, the municipality bears the burden of proving that the real property is subject to taxation. Thus, the taxing authority must prove that the

In the present case, the petitioner’s purposes are strikingly similar to those of both the Mohonk Trust and the North Manursing Wildlife Sanctuary, and there is no doubt that it is being operated in accord with the statéd purposes. Its emphasis upon preservation and environmental concerns affords a sufficient basis for finding its primary purpose to be of a character that is absolutely exempt. Thus, particularly in light of the similarities between petitioner’s purposes and those of the organizations previously discussed, the town has failed to prove that petitioner is not entitled to tax exemption on this basis.

This, of course, does not end our inquiry, as it may be possible that the particular property in issue is used for a purpose only qualifiedly exempt. The acreage that comprises the Cary Arboretum is dedicated to a number of general activities, the most predominant of which are conservation, preservation, instruction, recreation and ecological study. Again, as in Mohonk Trust and North Manursing, the use to which this particular parcel is put accomplishes several exempt purposes, including educational, charitable and moral improvement purposes. We see no reason to depart from our prior holdings that lands used for such a combination of purposes should be deemed to fall within the broader categories of absolutely exempt uses.

In attempting to show that the Cary Arboretum i¿ not used for absolutely exempt purposes, the town points to restrictions on public access to the property. While we agree that to qualify for tax exemption, the arboretum must be “necessary to the public good” and “open to and

Accordingly, the order of the Appellate Division should be affirmed, with costs.

Chief Judge Cooke and Judges Jasen, Jones, Wachtler, Fuchsberg and Meyer concur.

Order affirmed.