Tax Type
Property Tax
Description
Charitable, cultural, patriotic, historical, and benevolent organizations
Topic
Exemptions
Property Subject to Tax
Date Issued
10-28-1998
| The Honorable Philip J. Kellam Commissioner of the Revenue for the City of Virginia Beach |
You ask whether the American Legion Department of Virginia is exempt from personal property taxation pursuant to § 58.1-3607(A)(1) of the Code of Virginia, which provides an exemption by designation for "the posts of the American Legion.' You relate that the American Legion Department of Virginia is the parent organization of the American Legion posts and that the property of the parent organization is not owned by any of the posts.
Section 58.1-3607(A) provides:
- Pursuant to the authority granted in Article X, § 6(a)(6) of the Constitution of Virginia [1971] to exempt property from taxation by designation, . . . the real and personal property of the following organizations, corporations and associations shall be exempt from taxation:
1. Property of . . . the posts of the American Legion. . . .
"Virginia adheres to the rule of strict construction of tax exemptions.'1 "The rule of strict construction stems from the announced policy of this Commonwealth to distribute the tax burden uniformly and upon all property. Thus, any provision granting an immunity from taxes, whether called an exclusion, limitation or exemption, is narrowly construed.'2
Article X, § 6(a)(6) grants an exemption from state and local taxation for property "used by its owner for religious, charitable, patriotic, historical, benevolent, cultural, or public park and playground purposes, as may be provided by classification or designation by a three-fourths vote of the members elected to each house of the General Assembly.' This constitutional provision authorizes the General Assembly to classify and designate certain property as exempt from state and local taxation.3 In accordance with the authority granted in this provision, § 58.1-3607 sets forth organizations exempt from taxation by General Assembly designation and includes "the posts of the American Legion' among those so designated.4
A "parent organization' generally refers to the part of an organization "which coordinates, supervises or exercises control over policy, fund raising, and expenditures, or assists or advises one or more chapters, branches or affiliates.'5 Although the American Legion Department of Virginia may be a parent organization with which American Legion posts are affiliated, it does not appear from the limited facts presented by you to be "an incorporated post of the American Legion.'6
Under well-accepted principles of statutory construction, when the language of a statute is plain and unambiguous and its meaning is clear and definite, it must be given effect.7 It is equally well-settled that when a statute creates a specific grant of authority, the authority exists only to the extent specifically granted in the statute.8 The clear language of § 58.1-3607(A)(1) exempts the American Legion entities that are "the posts of the American Legion.' Furthermore, in other statutory provisions wherein the General Assembly provides exemptions from taxation, it expressly includes the parent organization as well as its affiliates.9 The fact that the General Assembly has not done so with the designation in question must be considered in construing the statute consistent with its object and purpose.10 The designation of "the posts of the American Legion,' therefore, does not, in my opinion, include the parent organization.11
Consequently, I am required to conclude that the American Legion Department of Virginia is currently not an organization designated as exempt from local real and personal property taxation within the purview of § 58.1-3607(A)(1).
1 WTAR Radio-TV v. Commonwealth, 217 Va. 877, 879, 234 S.E.2d 245, 247 (1977).
2 Forst v. Rockingham, 222 Va. 270, 276, 279 S.E.2d 400, 403 (1981); see also Commonwealth v. Wellmore Coal, 228 Va. 149, 153, 320 S.E.2d 509, 511 (1984).
3 See 1997 Op. Va. Att'y Gen. 211, 212.
4 Section 58.1-3607(A)(1).
5 Section 57- 48 (defining "parent organization' and other terms related to solicitation of contributions).
6 1973-1974 Op. Va. Att'y Gen. 395, 395 (incorporated post of American Legion which is chartered by and pays dues to national American Legion organization is entitled to tax exemption for real property owned by it).
7 Temple v. City of Petersburg, 182 Va. 418, 29 S.E.2d 357 (1944); see also 1997 Op. Va. Att'y Gen. 16, 17.
8 2A Norman J. Singer, Sutherland Statutory Construction § 47.23 (5th ed. 1992 & Supp. 1998); 1996 Op. Va. Att'y Gen. 61, 62.
9 See, e.g., 1984 Va. Acts ch. 675, at 1178, 1411 (exempting from taxation property of Ruritan National, Inc., and its local affiliates pursuant to § 58.1-3650.16, not set out in Virginia Code); § 58.1-3614 ("The Boy Scouts of America, Girl Scouts of the United States of America, and their subsidiaries'); § 58.1-3616 ("The American National Red Cross and local chapters thereof').
10 See 1997 Op. Va. Att'y Gen., supra note 3, at 212.
11 Compare 1973-1974 Op. Va. Att'y Gen. 224, 224-25 (statutory requirement that organization seeking permit to conduct bingo games and raffles be in existence for two years prior to seeking permit applies to local post applying for permit rather than parent organization of post).
Attorney General's Opinion