Section 39 Franciscan and Barnes

LibraryTax Law 2009

Sections 6 and 6(b) of article X of the Missouri Constitution and § 137.100, RSMo Supp. 2007, provide an exemption for charitable real and personal property that is used actually, regularly, and exclusively for charitable purposes. Before the late 1970s, these provisions for exempting purposes “purely charitable” were rigidly interpreted. See:

  • Defenders’ Townhouse, Inc. v. Kansas City, 441 S.W.2d 365 (Mo. 1969)

  • Paraclete Manor of Kansas City v. State Tax Comm’n, 447 S.W.2d 311 (Mo. 1969)

The courts also had adopted an “all-or-nothing” rule whereby any use of property by an organization for purposes other than charitable voided the exemption. The interpretation of what constituted a “charitable purpose” changed dramatically with the Franciscan Tertiary Province of Missouri, Inc. v. State Tax Commission, 566 S.W.2d 213 (Mo. banc 1978), and Barnes Hospital v. Leggett, 589 S.W.2d 241 (Mo. banc 1979), cases. In Franciscan Tertiary, the Court attempted to reconcile what it considered to be inconsistencies in predecessor charitable...

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