Three Angels Broadcasting Network v. Department of Revenue

SUPREME COURT CASES

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State: Illinois

Court: 5th District Appellate

Docket No: 5-05-0724 Rel

Case Date: 03/31/2008

Preview:NO. 5-05-0724
NOTICE Decision filed 03/31/08. The text of this decision may be changed or corrected prior to the filing of a Peti tion for Rehearing or th e

IN THE APPELLATE COURT OF ILLINOIS

FIFTH DISTRICT ________________________________________________________________________ THREE ANGELS BROADCASTING NETWORK, INC., ) Appeal from the ) Circuit Court of ) Franklin County. Plaintiff-Appellant, ) ) v. ) No. 04-MR-15 ) THE DEPARTMENT OF REVENUE, ) ) Defendant-Appellee ) ) (Thompsonville Community High School District No. ) 112 and Thompsonville School District No. 62, ) Intervenors in the Administrative Proceedings, and ) Honorable Franklin County Board of Review, Intervenors in the ) E. Kyle Vantrease, Circuit Court Proceedings, Appellees). ) Judge, presiding. ________________________________________________________________________ JUSTICE SPOM ER delivered the opinion of the court: The plaintiff, Three Angels Broadcasting Network, Inc. (TABN), appeals the decision of the Illinois Department of Revenue (the Department) to deny its application for a property tax exemption pursuant to sections 15-40 and 15-65 of the Illinois Property Tax Code (the Code) (35 ILCS 200/15-40, 15-65 (West 2000)). TABN claims that the Department erred, inter alia , in the following respects: (1) it found that TABN failed to prove that its property was used exclusively for a religious purpose, without a view to profit, (2) it found that TABN failed to prove that its property was used exclusively for charitable or beneficent purposes, without a view to profit, and (3) the administrative law judge (ALJ) refused to consider certain items of evidence offered by TABN at the hearing on its application for a property tax exemption. Intervenor Franklin County Board of Review (the Board) raises TABN's failure to name the Board as a defendant in the proceedings before the circuit court 1

disposition of the same.

as an additional reason to affirm the decision of the Department. For the reasons that follow, we affirm the decision of the Department. FACTS TABN operates a television and radio station that features an array of programming, including devotional and inspirational shows, as well as programming devoted to music, cooking, exercise, and a healthy lifestyle, all of which are consistent with the principles of the Seventh-Day Adventist Church (Adventist). In 2000 and 2001, TABN filed applications for a religious-use property tax exemption with the Department. The property at issue, located on a five-acre parcel of land at 3390 Charlie Good Road in Franklin County, consists of three buildings. The Board recommended denying the applications. TABN requested a hearing before the Department, and Thompsonville School Districts No. 112 and No. 62 (the school districts) were permitted to intervene in the proceedings. The 2000 and 2001

applications were consolidated for purposes of a joint administrative hearing. Prior to the hearing, a subpoena duces tecum and ad testificandum was issued that required the president of Tri-State Christian TV (Tri-State), an organization located in Williamson County which TABN claims has the same or similar methods of operation, to appear at the hearing and produce certain documents. The subpoena ordered that Tri-State produce all documents evidencing correspondence with the Department of Revenue regarding its property tax exemption, its state and federal income tax returns for the years 1999 through 2001, and documents reflecting the content of Tri-State's programming. Thereafter, the Department and the school districts filed a motion to quash the subpoena and motions in limine seeking the exclusion of, inter alia , any evidence regarding other property tax exemption decisions made by the Department, including any decisions made regarding the exemption status of Tri-State. In addition, the motions in limine sought to exclude the testimony of Ted Wilson or Denis Fortin, who were to testify that the health and lifestyle

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programming produced and aired by TABN promotes a central tenet of the Adventist faith. On September 17, 2002, the ALJ entered an order granting the motion to quash and the motions in limine . Although TABN appeals the ALJ's exclusion of the evidence of TriState's property tax exemption status, which it presented as an offer of proof at the hearing on its application for exemption, it does not appeal the order granting the motion to quash the subpoena ordering Tri-State's president to appear and produce documents. At the hearing before the Department, which began on September 23, 2002, TABN also contended that it should be entitled to a charitable-use property tax exemption. During the hearing, Danny Shelton testified that he is the president of TABN and that he is an ordained Adventist elder but is not a minister. TABN was incorporated in 1985 or 1986 as a general not-for-profit corporation. TABN's articles of incorporation were admitted into evidence during Mr. Shelton's testimony. According to the articles of incorporation, TABN's purposes are "exclusively religious, charitable[,] or educational within the meaning of Section 501(c)(3) of the Internal Revenue Code of 1954, as amended" (26 U.S.C.

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