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ATTORNEYS FOR PETITIONER: JEFFREY T. BENNETT BRADLEY D. HASLER BINGHAM MCHALE LLP Indianapolis, IN

ATTORNEYS FOR RESPONDENTS: STEVE CARTER ATTORNEY GENERAL OF INDIANA JOHN D. SNETHEN DEPUTY ATTORNEY GENERAL Indianapolis, IN

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IN THE INDIANA TAX COURT
_____________________________________________________________________ ) HCPI INDIANA LLC, ) ) Petitioner, ) ) v. ) Cause No. 49T10-0604-TA-36 ) HAMILTON COUNTY PROPERTY TAX ) ASSESSMENT BOARD OF APPEALS and ) HAMILTON COUNTY ASSESSOR, ) ) Respondents. ) _____________________________________________________________________ ON APPEAL FROM A FINAL DETERMINATION OF THE INDIANA BOARD OF TAX REVIEW NOT FOR PUBLICATION May 31, 2007 FISHER, J. HCPI Indiana LLC (HCPI) appeals the final determination of the Indiana Board of Tax Review (Indiana Board) denying its request for a property tax exemption for the 2004 tax year (the year at issue). The issue for this Court to decide is whether the Indiana Board erred in holding that HCPI failed to establish that its property was owned, occupied, and predominately used for charitable or educational purposes.

FACTS AND PROCEDURAL HISTORY HCPI, a foreign limited liability company, owns a 7.77 acre parcel of land in Carmel, Indiana. On the parcel are the Methodist Medical Plaza of Carmel (the MMP) and its attendant parking lot. The MMP is a 123,168 square foot building comprised of an outpatient center and eleven medical office suites. During the year at issue, HCPI leased 59% of the MMP (i.e., the entire outpatient center and nine suites) to Clarian Health Partners, Inc. (Clarian), a domestic non-profit corporation. 1 Clarian, under the terms of a ten-year lease with HCPI, agreed to pay a base rent and operating expenses, which included property taxes, in excess of an agreed upon amount. Clarian is "organized exclusively for charitable, educational, and scientific purposes within the meaning of Section 501(c)(3) of the Internal Revenue Code[.]" (Cert. Admin. R. at 434.) Clarian uses the MMP to perform surgeries or provide other forms of medical care related to in vitro fertilization, neurology, women's health, arthritis care, injury rehabilitation, ophthalmology, and orthopedics. Clarian also uses the MMP to provide free or reduced fee health care to eligible patients and to provide an experiential educational setting for medical students. On May 17, 2004, HCPI filed an application for an exemption with the Hamilton County Property Tax Assessment Board of Appeals (PTABOA), seeking a charitable purposes exemption, an educational purposes exemption, or a hospital purposes exemption for the portion of the MMP leased to Clarian. On June 21, 2004, the

PTABOA denied each of HCPI's requests for exemption. HCPI subsequently appealed to the Indiana Board. On February 20, 2006, after conducting a hearing, the Indiana Two other for-profit corporations that provide health care services leased the remaining suites. 2
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Board issued a final determination denying each of HCPI's requests for exemption. On April 6, 2006, HCPI initiated this original tax appeal. 2 The Court heard the parties' oral arguments on February 28, 2007. necessary. STANDARD OF REVIEW This Court gives great deference to final determinations of the Indiana Board when it acts within the scope of its authority. See Knox County Prop. Tax Assessment Bd. of Appeals v. Grandview Care, Inc., 826 N.E.2d 177, 180 (Ind. Tax Ct. 2005). Consequently, the Court will reverse a final determination of the Indiana Board only if it is: (1) arbitrary, capricious, an abuse of discretion, or otherwise not in accordance with law; contrary to constitutional right, power, privilege, or immunity; in excess of statutory jurisdiction, authority, or limitations, or short of statutory jurisdiction, authority, or limitations; without observance of procedure required by law; or unsupported by substantial or reliable evidence. Additional facts will be supplied as

(2)

(3)

(4) (5)

IND. CODE ANN.

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