Summary 2010 WY 106

Summary of Decision issued July 30, 2010

Summaries are prepared by Law Librarians and are not official statements of the Wyoming Supreme Court.

Case Name: Oakley, Fremont County Assessor v. Fremont County Cmty. Coll. Dist.

Citation: 2010 WY 106

Docket Number: S-09-0261

Appeal from the District Court of Fremont County, the Honorable Norma E. Young, Judge.

Representing Oakley: Jodi A. Darrough, Fremont County Attorney’s Office, Lander, Wyoming.

Representing Fremont County Community College District: Frank B. Watkins of Watkins, PC, Riverton, Wyoming.

Facts/Discussion: The Fremont County Assessor (the Assessor) appealed from a decision of the district court exempting from taxation certain property in Riverton owned by Central Wyoming College (CWC). The parties agreed the sole issue was whether certain lots within CWC’s business park were exempt from taxation based on their current use.
The parties agreed that the CWC property was tax exempt if used primarily for a governmental purpose. CWC asserted that the business park property was intended to enhance the educational purpose of the college and the leased property generated revenue that was used for the college’s support and maintenance. The Assessor contended the lessee’s use of the property was clearly non-governmental and therefore was taxable.
Article 15, § 12 of the Wyoming Constitution was amended to provide an exemption for governmental property only when used primarily for a governmental purpose. The Court has acknowledged that property use is the critical issue in determining tax-exempt status. The mere ownership of property by a governmental entity does not exempt the property. The property at issue is part of a business park. The tenants that have leased property are all private, for-profit businesses. The businesses are lessees only and are not managed by, controlled by, or affiliated with CWC. The lessees do not appear to be reasonably necessary or essential to the operation of CWC. If there was some tangential use of the property by CWC faculty, staff, or students, it has not been demonstrated that such use was primarily governmental. The district court correctly pointed out that we want to avoid a tax spiral where the government is taxing itself to pay itself. In this case, the for-profit tenants will likely have the tax assessment passed on to them. This will avoid the tax spiral and result in the tenants being placed on equal footing with the competitor businesses who don’t lease from government entities.

Conclusion: The for-profit tenants’ use of CWC’s business park property was clearly non-governmental and not necessary or essential to facilitate the efficient operation and maintenance of the college. Therefore the property is not tax exempt pursuant to Article 15, § 12 of the Wyoming Constitution. The decisions of the Fremont County Assessor and Board of Equalization are affirmed and the district court was reversed.

Reversed.

Dist.J. Brooks delivered the decision.

Link: http://tinyurl.com/2eeq927 .

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