TAXATION OF CHURCH PROPERTY.

New Zealand Herald, Volume XLIV, Issue 13465, 18 April 1907, Page 6

TAXATION OF CHURCH PROPERTY.

OTAGO PRESBYTERIAN APPEAL - CASE. [BY TKLECRAPH.—PRESS ASSOCIATION.] • Wellington, Wednesday. 'Ihe Court of Appeal, being composed of their Honors Justices Williams (presiding), Denniston, Chapman, and Button, began the hearing yesterday of the caso Commissioner of Taxes v. Otago Presbyterian Church Board of Property. This was ait appeal from the decision of Mr. Justice Cooper reversing the decision of the stipendiary magistrate at Dunedin. Appellant (the Commissioner of Taxes) sued the respondent Board in the Magistrate's Court at Dunedin, to recover the sum of £101 14s 4d, being unpaid laud tax on certain lands vested in the Board. The respondent Board set up in defence that the land in question was not taxable by reason of the exemption contained in section 16. sub-sec-tion 1, clause 15,- of the Land and Income Assessment Act, 1900, the respondent Board being a public educational institution, and the income of the Lands sought to be taxed being used to endow a college, which was carried on for a public educational purpose, and not for pecuniary profit. The magistrate held tl at the lands were exempt from taxation, and gave judgment for appellants, but on appeal to the Supreme Court that decision was reversed by Mr. Justice Cooper. This was ail appeal from that. Messrs. N. D. Bell and J. F. 31. Eraser appeared for appellant, and Mr. 0. J. Payne for the respondent Board. Mr. Bell, on behalf of the appellant, conceded that the college was not carried on for pecuniary gain, but was carried on solely for the teaching of theology. The land for the support of this college was by the Dunedin Church Lands Ordinance, 1861, transferred from the Provincial Government of Otago to the Presbyterian Church, and it was enacted that the income of this land should be devoted to the upkeep of the college. It was entirely under the control of the Theological Committee of the Synod of the Otago Pres-. byterian Church, and was carried on solely for theological purposes. The case is not concluded.