Section 7 New Rule?Barnes Hospital v. Leggett

• Library: Tax Law 2009

In practice, the courts had a difficult time moving away from the old “all-or-nothing” approach to the new partial exemption rule. On remand from the Supreme Court of Missouri in Barnes Hospital v. Leggett, 589 S.W.2d 241 (Mo. banc 1979) (Barnes I), the trial court conducted hearings in response to the Supreme Court’s direction that “a judgment be entered enjoining assessment of those portions of Queeny Tower which meet the Franciscan test.” Barnes Hosp. v. Leggett, 646 S.W.2d 889, 890–91 (Mo. App. E.D. 1983) (Barnes II) (citing Barnes I, 589 S.W.2d at 244) (emphasis added); Franciscan Tertiary Province of Mo., Inc. v. State Tax Comm’n of Mo., 566 S.W.2d 213 (Mo. banc 1978) (discussed in §§15.8 and 15.9 below).

As a result of its hearings, the trial court found that 16.6% of the Barnes property represented the portion occupied by part-time faculty members also engaged in the private practice of medicine and found, therefore, that it should be taxable. On appeal...