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Science Fiction Society Wins Property Tax Fight in Maryland

Posted on: Thursday, 16 December 2004, 21:00 CST

Science fiction literature got the seal of approval from the Court of Appeals yesterday when it ruled that the Baltimore Science Fiction Society should receive a property tax exemption because its activities have legitimate educational value.

Judge Alan M. Wilner, who wrote the opinion, did not disclose whether he is a fan of Luke Skywalker or Mr. Spock, instead choosing to focus closely on the dry legal argument.

The court reversed the late Baltimore City Circuit Judge Robert I. H. Hammerman, whose suicide last month made national headlines, in ruling that an administrative Tax Court decision in favor of the group should stand.

The chairman of the society's board of directors, Dale Arnold, claimed the result was a victory for science fiction as it struggles to seek a place at the high table of literature.

It does vindicate the validity of science fiction literature as, indeed, literature, he said.

Hammerman had appeared hostile to the concept of science fiction throughout, Arnold added, perhaps clouding his legal judgment in the case.

We started this with the knowledge that we had the facts on our side, he said. But lawyers aren't necessarily as interested in the English language as the general public.

In that sense, Arnold was glad that the Court of Appeals judges stuck to the legal issue, which revolved around the definition of the phrase educational purpose.

To be eligible for property tax exemption, nonprofit organizations have to show that their properties are used exclusively for a charitable or educational purpose to promote the general welfare of the people of the state, according to Section 7- 202 of the Tax Property Article.

Hammerman had adopted a narrow interpretation advanced by the state. He concluded that the various activities held at the society's Highlandtown building, which it has owned since 1991, could not be classed as educational because there was no systematic instruction.

He appeared to view the society, which was founded in 1974, more as a hobby club where much of the interaction between members and the public was of a social nature.

However, the Court of Appeals, agreeing with the Tax Court, adopted a more lenient definition, which took account of the society's efforts to support young science fiction writers and other related programs.

In addition to sponsoring an annual young writer's competition, the society holds writing workshops, has a library for its members and runs an annual convention where science fiction novelists and scientists discuss their work.

Wilner wrote that all of these initiatives serve an educational purpose, making the society eligible for the tax exemption.

The Tax Court properly rejected the confining definition of 'educational purpose' - and adopted a more realistic concept, he noted.

The Tax Court based its test on a dissenting opinion in a 1980 Michigan case, Ladies Literary Club v. City of Grand Rapids, an approach the Court of Appeals endorsed.

Assistant Attorney General Jeffrey G. Comen said the decision was something we can live with because the court has for the first time indicated how literary groups should be treated when deciding on tax- exempt status.

We are happy in that we have a test now we can apply to literary organizations, he added. We never really had that before.

Reflecting on the decision, Arnold, whose brother, Donald, argued the case on the society's behalf, said the society - thanks to the exemption - will now have more money to spend on its educational program.

It's certainly good news for us, he added.

WHAT THE COURT HELD

Case:

Baltimore Science Fiction Society Inc. v. State Department of Taxation and Assessment. CA No. 49, Sept. Term 2004. Reported. Wilner, J. Filed Dec. 15, 2004.

Issue:

Did the circuit court err in ruling that in order to receive a property tax exemption, a nonprofit group's educational efforts have to include systematic instruction?

Holding:

Yes; reversed and remanded. Such a definition of educational purpose is too confining; the society's efforts in sponsoring an annual young writer's competition, writing workshops and other programs qualified it for the exemption.

Counsel:

Donald J. Arnold, for appellant; Jeffrey G. Comen, for appellee.

Source: The Daily Record (Baltimore)

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