ÿWPC5 *FÖ0kãùÓ|ðùÖ|ú~DÏùàía’zžôQ^/¦€öyFð†¯¢†ãõ2KUoO"®¼ãc‚\¸5<ק†™ªhÔ¦Ê#ñ7”b sÞõÿ3€¼ØÞXq2É#7>žŠhŸF™ÀœÅó0¬Œs¦äcj=r̨M|cRGéçöwë~‘âå!ó-¸nŠ%ËaKÐÔåZû$@´su•4>ÞR"‡“ ÷XM%V‘gGu‚Ìs.³þ6ô€©Õ2Œµyô…à¬M»è.·Ð¾Áܾôøƒszˆ¶æ0ÐÙ†^ËC€f¥‡eœ9§½Þ¢. ë¡¿¿µ\Ê&Tãmé$ª*(QòˆÂø3$pö…5²ˆ{·™·)ò7*Ó) Í 'šÇó—V+ÇF­kõ†S\sÇÔO¡ø 5 øÆÔÓÕÞ Ÿ4ý°¸îµ@ë3°k:ÈŒp¤Ÿ=X!ùBýW=„õ‘L]Í…7€p’áÿþ÷+:”ù4É#üÓæeàv×ü}ÙߧôTrïWl|äÖ¦yg¸ÖçãƒÛØ{Æ_3¯&÷´¨^Å@>šFR÷ÎgCIÜò_}!ã°²NºDc”˜WE-ù3SGZ‘Ê%TÄ„žªµ?wò)„߸žñÍ'=b#É\ %% ^ + 0ˆ7 UhN¿ w 4 z% ÒŸ q € m‚ 0D™ ÆÝ Æ£ ÆiÆ/U&NõNCEU&NYE§”©Ó=³/////////Ââ%â%â%â%â%â%â%â%â%â%â%b¤'¤'¤'¤'¤'¤'¤'¤'¤'¤'¤'¤'¤'¤'¤'¤'¤'¤'¤'¤'¤'¤'¤'¤'¤'¤'¤'¤'¤'¤'¤'¤'¤'¤'¤'¤' 0ë¬'¬'¬'¬' B—(j´( 0¤1 D5Â1 D-÷1 0K$2$2 ASo2ÆÂ2 0¤ˆ3 0D,4 A«p4˜\\IB01S02\CLERKJACÈÈ,,,,ÈÈ0»€‘Ž1Ï (`£ª$¡¡Ñ€.ÑÑ8€½­»»d»»d8ÑÑ ý ÑÓ  Ó(í€"  Z6Times New Roman Regular6hö001s02 ˜C:\PROGRA~1\COREL\WORDPE~1\TEMPLATE\CUSTOM~1\REVISE~1.WPTC:\Program Files\Corel\WordPerfect Office 2000\Template\Custom WP Templates\revised standard opinion.wpt3|xÿU‹ÿÀÀÀ(#Ã$òòÚ  Ú0Ú  ÚóóLevel 1Level 2Level 3Level 4Level 5‚Level 1Level 2Level 3Level 4Level 5„Level 1Level 2Level 3Level 4Level 5…Level 1Level 2Level 3Level 4Level 5(ÖÃ9 Z ‹6Times New Roman Regular Ý ƒRàø$ÝÓ  Óà  àòòÚ  Ú1Ú  ÚóóÔ€ô­lò»»ÔÝ  ÝÔ_ÔYouth€Programs€is€exempt€from€the€payment€of€federal€income€taxes€as€a€charitable€entity€under€26€U.S.C.Ð ° Ððð€501(c)(3).(ÖÃ9 Z‹6Times New Roman Regular ŠÝ ƒRàø$ÝÓ  Óà  àòòÚ  Ú2Ú  ÚóóÔ€ô­lò»»ÔÝ  ÝÔ_ÔSection€67„5„212(a)(3)€provides:€Ð ° ÐÌà8  à(3)€The€property€of€such€institution€shall€not€be€exempt€if:Ð2‚Ð Ð  Ðà0  àà8` (#(#àà ¸ à(A)€The€owner,€or€any€stockholder,€officer,€member€or€employee€of€such€institutionÐ óC Ðshall€receive€or€may€be€lawfully€entitled€to€receive€any€pecuniary€profit€from€the€operationsÐ ´ Ðof€that€property€in€competition€with€like€property€owned€by€others€which€is€not€exempt,Ð uÅ Ðexcept€reasonable€compensation€for€services€in€effecting€one€(1)€or€more€of€such€purposes,Ð 6 † Ðor€as€proper€beneficiaries€of€its€strictly€religious,€charitable,€scientific€or€educationalÐ ÷ G Ðpurposes;€orи ` Ð ` Ð  Ðà0  àà8` (#(#àà ¸ à(B)€The€organization€thereof€for€any€such€avowed€purpose€be€a€guise€or€pretenseÐ y É  Ðfor€directly€or€indirectly€making€any€other€pecuniary€profit€for€such€institution,€or€for€any€ofÐ : Š  Ðits€members€or€employees,€or€if€it€be€not€in€good€faith€organized€or€conducted€exclusivelyÐ û K  Ðfor€one€(1)€or€more€of€these€purposes.м ` Ð ` Ð  Ðà0  àThe€real€property€of€any€such€institution€not€so€used€exclusively€for€carrying€out€thereupon€one€(1)€or€more€ofÐ }Í  Ðsuch€purposes,€but€leased€or€otherwise€used€for€other€purposes,€whether€the€income€received€therefrom€be€usedÐ >Ž  Ðfor€one€(1)€or€more€of€such€purposes€or€not,€shall€not€be€exempt;€but€if€a€portion€only€of€any€lot€or€building€ofÐ ÿO  Ðany€such€institution€is€used€purely€and€exclusively€for€carrying€out€thereupon€one€(1)€or€more€of€such€purposesÐ À  Ðof€such€institution,€then€such€lot€or€building€shall€be€so€exempt€only€to€the€extent€of€the€value€of€the€portion€soÐ Ñ  Ðused,€and€the€remaining€or€other€portion€shall€be€subject€to€taxation.ÐB’ (#(# ÐÌTenn.€Code€Ann.€ðð€67„5„212(a)(3)(Supp.€2004). ÉÝ ƒRàø$ÝÓ  Óà  àòòÚ  Ú3Ú  ÚóóÔ€ô­lò»»ÔÝ  ÝÔ_ÔThe€State€does€not€contend€that€St.€Jude€is€not€a€charitable€institution.€€ Ý ƒRàø$ÝÓ  Óà  àòòÚ  Ú4Ú  ÚóóÔ€ô­lò»»ÔÝ  ÝÔ_ÔAs€noted€by€the€supreme€court,€following€the€decision€of€the€Board€of€Equalization€in€òòGeorge€PeabodyÐ ° ÐCollegeóó,€the€legislature€enacted€section€67ð!ð502,€currently€section€67„5„213,€which€provides:Ð qÁ ÐÌà8  à(a)€Real€estate€owned€by€an€educational€institution€and€used€primarily€for€dormitory€purposes€for€itsÐ óC Ðstudents,€even€though€other€student€activities€are€incidentally€conducted€therein,€and€even€though€theÐ ´ Ðstudent's€spouse€or€children€may€reside€therein,€is€exempt€from€taxation.ÐuÅÐ Ð  ÐÌTenn.€Code€Ann.€ðð€67„5„213(2003).Ð ÷ G Ð ©Ý ƒRàø$ÝÓ  Óà  àòòÚ  Ú5Ú  ÚóóÔ€ô­lò»»ÔÝ  ÝÔ_ÔThe€òòBook€Agents€óócourt€addressed€the€taxing€authoritiesðð€contention€that€if€the€property€was€not€entirely€usedÐ ° Ðfor€exempt€purposes,€then€all€the€property€was€taxable€by€noting€that€then€section€67ð!ð502(2)€provided,€in€pertinent€part:Ð qÁ ÐÌà8  àif€a€portion€only€of€any€lot€or€building€of€any€such€institution€is€used€exclusively€for€carrying€outÐ óC Ðthereupon€one€(1)€or€more€of€such€purposes€of€such€institution,€then€such€lot€or€building€shall€be€soÐ ´ Ðexempt€only€to€the€extent€of€the€value€of€the€portion€so€used,€and€the€remaining€or€other€portion,€toÐ uÅ Ðthe€extent€of€the€value€of€such€remaining€or€other€portion,€shall€be€subject€to€taxation.€à8@xÐ Ð àÐ 6 † ÐÌòòBook€Agentsóó,€513€S.W.2d€514,€525€(Tenn€1974)€(quoting€Tenn.€Code€Ann.€ðð€67„€„€502(2)).Ð ¸  ÐÌà  àThe€provision€as€currently€codified€states:Ð : Š  ÐÌà8  àThe€real€property€of€any€such€institution€not€so€used€exclusively€for€carrying€out€thereupon€one€(1)Ð ¼  Ðor€more€of€such€purposes,€but€leased€or€otherwise€used€for€other€purposes,€whether€the€incomeÐ }Í  Ðreceived€therefrom€be€used€for€one€(1)€or€more€of€such€purposes€or€not,€shall€not€be€exempt;€but€if€aÐ >Ž  Ðportion€only€of€any€lot€or€building€of€any€such€institution€is€used€purely€and€exclusively€for€carryingÐ ÿO  Ðout€thereupon€one€(1)€or€more€of€such€purposes€of€such€institution,€then€such€lot€or€building€shall€beÐ À  Ðso€exempt€only€to€the€extent€of€the€value€of€the€portion€so€used,€and€the€remaining€or€other€portionÐ Ñ  Ðshall€be€subject€to€taxation.ÐB’ Ð Ð  ÐÌTenn.€Code€Ann.€ðð€67„5„212(a)(3)(Supp.€2004). Alissandratos COA P.J. W.S.SouthwindDeptSanifillwhereunder w]ew]henT.C.A.s]inceT]hat S.W. t]heo]therHospsCommn i]nServswellnessCommn.minimusFonesReece- ù-(|G2àø$¤¤Ý ƒ£ª!ÝÑ€.ÑÑ8€©»»dd8ÑÑ ý ÑÓ  ÓÝ  Ýà  àòòÚ  Ú0Ú  ÚóóÔ€ô­lò»»Ô d `Ý ƒRàø$ÝÓ  Óà  àòòÚ  Ú6Ú  ÚóóÔ€ô­lò»»ÔÝ  ÝÔ_ÔWe€note€Justice€Fones€dissent€in€òòShared€Hospital€Services€Corporationóó.€€In€his€dissent,€Justice€Fones€stated:Ð ° ÐÌà8  àà ` àThe€Tennessee€definition€of€a€charitable€institution€requires,€in€essence,€that€its€efforts€andÐ 2‚ Ðproperty€be€devoted€"exclusively€to€the€improvement€of€human€rights€and/or€conditions€in€theÐ óC Ðcommunity."€I€cannot€agree€that€a€legal€entity€carrying€out€its€chartered€purpose€of€furnishing€reusableÐ ´ Ðor€disposable€laundry€supplies€to€non-profit€charitable€or€other€exempt€institutions€is€thus€devotingÐ uÅ Ðits€efforts€and€property€exclusively€to€the€improvement€of€human€rights€and/or€conditions€in€theÐ 6 † Ðcommunity.€The€furnishing€of€laundry€supplies€is€simply€not€ministering€to€the€needs€of€theÐ ÷ G Ðcommunity.à8¸ Ð Ð àи ¸ ¸  Ðà8  àà ` àIn€Tennessee€we€have€a€three-pronged€test€that€must€be€met€in€order€to€qualify€for€theÐ y É  Ðexemption€at€issue€in€this€case.€First,€the€institution€must€be€qualified€as€a€religious,€charitable,Ð : Š  Ðscientific€or€educational€institution.€Second,€it€must€own€the€property€that€it€claims€to€be€exempt.Ð û K  ÐThird,€the€property€must€be€occupied€and€used€exclusively€for€one€or€more€of€the€exempt€purposes€ofÐ ¼  Ðits€charter€by€the€exempt€institution.òò€€Book€Agents€of€Methodist€Episcopal€Church€v.€State€Board€ofÐ }Í  ÐEqualizationóó,€513€S.W.2d€514€at€522€(Tenn.1974).€€Plaintiff's€property€is€used€exclusively€as€a€laundryÐ >Ž  Ðwhich€is€not€an€exempt€purpose€and€it€seems€to€me€that€even€if€it€could€qualify€as€a€charitableÐ ÿO  Ðinstitution€it€would€still€fail€to€meet€the€third€necessary€prerequisite.ÐÀ Ð Ð  ÐÌòòShared€Hospital€Servs.€Corp.€v.€Fergusonóó,€673€S.W.2d€135,€140€(Tenn.€1984)(Fones,€J.,€dissenting).Ð B’  ÐÌ(|3$££Ý ƒ£ª!ÝÑ€.ÑÑ8€©»»dd8ÑÑ ý ÑÓ  ÓÝ  ÝVVVV)ÿÿ!dxdx)!ÈÈÈÈdxdx( ±þ$’’ò òFigure€Ú  Ú1Ú  Úó ó^_X`YEþÿ<<CÿÿƒLevel 1Level 2Level 3Level 4Level 5(|3$¢¢Ý ƒ£ª!ÝÑ€.ÑÑ8€©»»dd8ÑÑ ý ÑÓ  ÓÝ  Ý($$””ò òÚ  Ú1Ú  Úó óX[Z&OLE 2.0 Box <=8ÿÿÿÿÿÿÿÿÿÿCÿÿ HKKKKÝ ƒ£ª!ÝÑ€.ÑÑ8€©»»ddÈ8ÑÑ ý ÑÓ  ÓÝ  ÝÔ_ÔÑ  ÑÔ€¼©»»»ÔÑ8€ΧXXdé»»d8ÑÑ  Ñà@ò ò ìàÔ‡îp†î»¼©ÔIN€THE€COURT€OF€APPEALS€OF€TENNESSEEˆÐ ° Ðà@òò%ìàAT€JACKSONÔ#†¼©»îîp† #ԈРÓ# ÐÓ  ÓSeptember€22,€2004€SessionÐ öF ÐÔ‡XΧX»¼©ÔÌò òÔ#†¼©»XXΧõ#ÔYOUTH€PROGRAMS,€INC.òòóó€v.€TENNESSEE€STATE€BOARD€OFÐ ï? ÐEQUALIZATION,€òòet€alóó.Ô‡XΧX»¼©Ôó óÐ  P ÐÌà@@½½ìàò òDirect€Appeal€from€the€Chancery€Court€for€Shelby€CountyÐ ú J Ðà@@øøìàNo.€CH„02„1024„3€€€€€€D.€J.€Alissandratos,€ChancellorÐ ä 4 ÐÌÌà@@ìì*ìàßA€V) °°` d€÷E<¡` AßÐ ¢ò  ÐÌà@@TTìàNo.€W2003„02817„COA„R3„CV€„€Filed€December€14,€2004Ð ›ë  ÐÌßA€V) °°` dE<n` AßÐ o¿  Ðó óÌÓ  ÓÔ‡XæòXXXΧÔThe€chancery€court€reversed€the€Assessment€Appeals€Commission€and€held€that€Youth€Programs,Ð g· Ða€charitable€organization,€is€entitled€to€a€property€tax€exemption€on€real€property€in€Shelby€CountyÐ P  Ðused€in€conjunction€with€the€FedEx/St.€Jude€Classic€golf€tournament.€€The€trial€court€determined€theÐ 9‰ Ðdisputed€property€is€used€exclusively€for€a€charitable€purpose€and€that€an€unusable€area€is€usedÐ "r Ðconstructively€and€is€likewise€exempt.€€The€Shelby€County€Assessor€of€Property€and€the€StateÐ  [ Ðappeal.€€We€affirm.Ð ôD ÐÔ#†XΧXXXæòÁ#ÔÔ#†¼©»XXΧ #ÔÔ‡XΧX»¼©ÔÓµÓÌò òTenn.€R.€App.€P.€3€Appeal€as€of€Right;€Judgment€of€the€Chancery€Court€Affirmed;€andÐ Æ ÐRemandedó óÐ ° ÐÌòòÓ  ÓÔ#†¼©»àXΧ–#ÔÔ‡XΧX.¼©ÔDavid€R.€Farmer,€J.óó,€delivered€the€opinion€of€the€court,€in€which€òòW.€Frank€Crawford,€P.J.,€W.S.,óóÐ ƒÓ Ðand€òòHolly€J.€Kirby,€J.óó,€joined.Ð l¼ ÐÌPaul€G.€Summers,€Attorney€General€and€Reporter,€Mary€Ellen€Knack,€Assistant€Attorney€General,Ð >Ž Ðfor€the€appellant,€Tennessee€State€Board€of€Equalization.Ð ' w ÐÌBrian€L.€Kuhn,€Shelby€County€Attorney€and€Thomas€E.€Williams,€Assistant€County€Attorney,€forÐ ù!I! Ðthe€appellant,€Shelby€County€Assessor€of€Property.€Ð â"2" ÐÌR.€Grattan€Brown,€Jr.€And€Katherine€P.€Griffin,€Memphis,€Tennessee,€for€the€appellee,€YouthÐ ´$ $ ÐPrograms,€Inc.Ð %í % ÐÌÓUÓò òOPINIONó óÔ#†¼©»XXΧ„#ÔÔ‡XΧX»¼©ÔÐ o'¿"' ÐÌÔ#†¼©»XXΧ« #ÔÓ  ÓÔ€XΧX»¼©ÔÔ‡XæòXXXΧÔà  àThis€dispute€requires€us€to€determine€whether€real€property€located€in€the€Southwind€PlannedÐ B)’$) ÐDevelopment€(ð ðSouthwindðð)€in€Shelby€County€(ð ðthe€propertyðð)€and€owned€by€Youth€Programs,€Inc.Ð +*{%* Ð(ð ðYouth€Programsðð)€is€exempt€from€property€taxation€under€Tennessee€Code€Annotated€ðð€67„5„Ð +d&+ Ð212(a)(1)(A).€€The€parties€do€not€dispute€the€facts€underlying€this€lawsuit,€and€stipulated€to€them€atÐ ý+M', Ðtrial.€€Ð æ,6(- ÐÐ Ï-).ý Ðà  àYouth€Programs€was€organized€in€1960€and€is€a€non„profit,€501(c)(3)€organization.׃×Ý ƒ #ÃÝòòÚ  Ú1Ú  ÚóóÝ  Ý×  ×€€ItsÐ ° Ðpurpose€is€to€raise€funds€for€other€501(c)(3)€charitable€organizations,€and€St.€Jude€ChildrenððsÐ ™é ÐResearch€Hospital,€located€in€Memphis,€(ð ðSt.€Judeðð)€has€been€its€sole€beneficiary€since€1970.€€YouthÐ ‚Ò ÐPrograms€conducts€one€event€a€year:€the€FedEx/St.€Jude€Classic€golf€tournament€(ð ðthe€tournamentðð).€Ð k» ÐThe€tournament€is€a€PGA€professional€tournament€and€is€conducted€pursuant€to€the€terms€of€a€PGAÐ T¤ ÐTour€Sponsor€Agreement€executed€in€1999.€€The€PGA€Tour€receives€entry€fees€for€players€whoÐ =  Ðparticipate€in€the€tournament.€€Additionally,€Youth€Programs€and€Federal€Express€CorporationÐ & v Ð(ð ðFedExðð)€entered€into€a€Sponsorship€Agreement€in€1998,€pursuant€to€which€FedEx€is€the€titleÐ  _ Ðsponsor€of€the€tournament.€€Under€the€Sponsorship€Agreement,€FedEx€provides€security€services,Ð ø H Ðexpress€shipping€services,€and€communication€at€no€charge.€€FedEx€also€makes€monetaryÐ á 1  Ðcontributions€to€Youth€Programs€to€partially€fund€the€tournamentððs€three„million€dollar€prize€purse.Ð Ê   ÐYouth€Programs€generates€the€sums€necessary€to€fund€the€remainder€of€the€purse€and€to€pay€otherÐ ³  Ðcosts.€€As€of€December€2001,€when€this€matter€was€heard€before€the€Assessment€AppealsÐ œì  ÐCommission,€Youth€Programs€was€conducting€the€tournament€with€five€full„time€and€six€part„timeÐ …Õ  Ðstaff€members€and€approximately€1,400€community€volunteers.€€Youth€Programs€donates€theÐ n¾  Ðproceeds€from€the€tournament€to€St.€Jude.€€The€tournament€had€generated€over€$12,500,000€for€St.Ð W§  ÐJude€through€the€date€of€the€2001€hearing.Ð @ ÐÌà  àYouth€Programs€uses€the€property€which€is€the€subject€of€this€action€for€one€month€a€year,Ð b Ðexclusively€for€the€tournament.€€For€the€remainder€of€the€year,€the€property€is€closed€to€the€publicÐ ûK Ðand€unused.€€This€property€includes€two€parcels€of€land:€Parcel€9/Lot€C€and€Lot€25.€€Parcel€9/LotÐ ä4 ÐC€is€a€24€acre€lot.€€Youth€Programs€uses€17€acres€of€this€parcel€as€a€staging€area€for€three€weeksÐ Í Ðprior€to€the€tournament€and€as€a€parking€area€for€approximately€1,700€vehicles€for€one€week€duringÐ ¶ Ðthe€tournament.€€The€remainder€of€Parcel€9/Lot€C€is€wooded€and€unusable.€€Youth€Programs€usesÐ Ÿï ÐLot€25€as€a€walkway€from€Parcel€9/Lot€C€to€the€tournament€grounds.€€For€the€tournament€itself,Ð ˆØ ÐYouth€Programs€uses€the€golf€facility€at€Southwind€free€of€charge€under€an€agreement€entered€intoÐ qÁ Ðbetween€Youth€Programs€and€the€Tournament€Players€Club€at€Southwind.€Much€of€the€revenueÐ Zª Ðraised€from€the€tournament€is€generated€by€the€sale€of€corporate€ticket€packages,€which€includeÐ C“ Ðpasses€for€parking€on€the€property.€€Phil€Cannon,€the€Director€of€the€tournament,€characterized€theÐ ,| Ðparking€passes€as€an€ð ðintegral€part€of€every€sale€we€(Youth€Programs)€make(s).ðð€€Ð e ÐÌà  àIn€September€1999,€Youth€Programs€applied€to€the€State€Board€of€Equalization€for€aÐ ç 7 Ðcharitable€exemption€from€ad€valorem€property€taxation€on€the€property.€€The€Shelby€CountyÐ Ð!   ÐAssessor€of€Property€(ð ðthe€Countyðð)€and€the€Tennessee€Board€of€Equalization€(ð ðthe€Boardðð)€deniedÐ ¹" ! ÐYouth€Programsðð€applications€for€property€tax€exemptions€relative€to€the€property.€€The€BoardÐ ¢#ò" Ðreasoned€that,€despite€its€not„for„profit€status,€Youth€Programs€fundamentally€is€engaged€in€theÐ ‹$Û# Ðâ âbusiness€of€producing€a€sporting€event.€€The€Board€determined,€therefore,€that€Youth€Programs€wasÐ t%Ä $ Ðnot€entitled€to€property€tax€exemption€under€Tennessee€Code€Annotated€ðð€67„5„212(a)(3)׃×Ý ƒ #ÃÝòòÚ  Ú2Ú  ÚóóÝ  Ý×  ×€becauseÐ ° Ðâ âit€uses€the€property€for€commercial€rather€than€charitable€purposes.€The€Assessment€AppealsÐ ™é ÐCommission€affirmed€the€Boardððs€determination.€€Ð ‚Ò ÐÌà  àYouth€Programs€appealed€the€determination€of€the€Assessment€Appeals€Commission€to€theÐ T¤ ÐShelby€County€Chancery€Court,€which€reversed.€€The€chancellor€determined€that,€as€a€charitableÐ =  Ðorganization€whose€sole€purpose€is€to€raise€funds€for€other€charitable€organizations,€Youth€ProgramsÐ & v Ðuses€its€property€exclusively€in€accordance€with€its€charitable€purpose€as€required€by€TennesseeÐ  _ ÐCode€Annotated€ðð€67„5„212(a)(1)(A).€€The€chancellor€further€held€Youth€Programs€is€notÐ ø H Ðfundamentally€engaged€in€a€business€enterprise,€and€that€the€use€of€its€property€was€a€reasonable€use.€Ð á 1  ÐAccordingly,€the€chancellor€held€Youth€Programs€is€exempt€from€ad€valorem€property€taxation.€€TheÐ Ê   ÐState€and€the€County€(collectively,€ð ðthe€Stateðð)€filed€timely€appeals€to€this€Court.€€We€affirm.Ð ³  ÐÌÓ  Óò òòòIssues€Presented€óóó óÐ …Õ  ÐÓÊ#ÓÌà  àAppellants€present€the€following€issues€for€our€review:Ð V¦  ÐÌà8  àà ` à1.€Whether€the€chancery€court€erred€in€holding€that€Youth€Programs€wasÐ (x Ðentitled€to€an€exemption€from€ad€valorem€property€taxation€for€property€used€as€aÐ a Ðparking€and€staging€area€for€the€FedEx/St.€Jude€Classic.ÐúJÐ Ð  ÐÌà8  àà ` à2.€Whether€the€chancery€court€erred€in€holding€that€Youth€Programs€wasÐ Ì Ðentitled€to€a€property€tax€exemption€for€the€entire€24„acre€tract€of€land€known€asÐ µ ÐParcel€9/Lot€C€when€it€was€undisputed€that€only€17€acres€of€the€property€wereÐ žî Ðactually€used€by€Youth€Programs.Ї×Ð Ð  Їà  àThe€County€presents€the€additional€issue€of€whether€the€trail€court€applied€the€incorrectÐ ° Ðstandard€of€review€or€incorrectly€substituted€its€judgment€for€that€of€the€State€Board€of€Equalization.Ð ™é ÐÌÓ  Óò òòòStandard€of€Reviewóóó óÐ k» ÐÓ(ÓÌà  àThis€appeal€involves€determinations€of€matters€of€law.€€Ô#†XΧXXXæò. #ÔÔ‡XæòXXXΧÔWe€review€the€trial€courtððsÐ < Œ Ðconclusions€on€matters€of€law€òòde€novoóó,€with€no€presumption€of€correctness.€€Tenn.€R.€App.€P.€13(d);Ð % u ÐòòBowden€v.€Wardóó,€27€S.W.3d€913,€916€(Tenn.€2000).€€Ð  ^ ÐÔ#†XΧXXXæòÍ(#ÔÔ‡XæòXXXΧÔòòÌÓ  Óò òAnalysisó óóóÐ Þ .  ÐÓ0*ÓÌà  àWe€first€address€the€issue€raised€by€the€County€regarding€the€trial€courtððs€standard€of€review.€Ð ¯ÿ  ÐThe€County€asserts€the€trial€court€incorrectly€applied€a€òòde€novo€óóstandard€of€review.€€TheÐ ˜è  ÐAdministrative€Procedures€Act€governs€appellate€review€of€an€administrative€law€judge's€decision.€Ð Ñ  ÐòòFreedom€Broad.€of€Tenn.,€Inc.€v.€Tennessee€Depððt€of€Revenueóó,€83€S.W.3d€777,€780€(Tenn.€Ct.Ð jº  ÐApp.2002)(citing€òòSanifill€of€Tenn.,€Inc.€v.€Tennessee€Solid€Waste€Disposal€Control€Bd.óó,€907€S.W.2dÐ S£  Ð807,€809€(Tenn.1995)).€€The€Act€provides,€in€pertinent€part:€Ð <Œ ÐÌà8  àThe€court€may€affirm€the€decision€of€the€agency€or€remand€the€case€for€furtherÐ ^ Ðproceedings.€The€court€may€reverse€or€modify€the€decision€if€the€rights€of€theÐ ÷G Ðpetitioner€have€been€prejudiced€because€the€administrative€findings,€inferences,Ð à0 Ðconclusions€or€decisions€are:€ÐÉÐ Ð  Ðà8  àà ` à(1)€In€violation€of€constitutional€or€statutory€provisions;€Ð²Ð Ð  Ðà8  àà ` à(2)€In€excess€of€the€statutory€authority€of€the€agency;€Ð›ëÐ Ð  Ðà8  àà ` à(3)€Made€upon€unlawful€procedure;€Ð„ÔÐ Ð  Ðà8  àà ` à(4)€Arbitrary€or€capricious€or€characterized€by€abuse€of€discretion€or€clearlyÐ m½ Ðunwarranted€exercise€of€discretion;€or€ÐV¦Ð Ð  Ðà8  àà ` à(5)€Unsupported€by€evidence€which€is€both€substantial€and€material€in€theÐ ? Ðlight€of€the€entire€record.€Ð(xÐ Ð  ÐÌTenn.€Code€Ann.€ðð€4„5„322(h)(1998).€€Review€of€an€agencyððs€findings€of€fact€is€limited€to€the€recordÐ úJ Ðof€the€case.€€Tenn.€Code€Ann.€ðð€4-5-€322(g)(1998);òò€Freedom€Broad.óó,€83€S.W.3d€at€781€(citingÐ ã 3 ÐòòSanifillóó,€907€S.W.2d€at€810).€€The€application€of€the€law€to€the€facts,€however,€is€a€question€of€lawÐ Ì!  Ðthat€may€be€addressed€by€the€courts.€€òòIdóó.€€The€question€of€whether€the€purpose€for€which€propertyÐ µ"! Ðis€used€qualifies€the€property€as€exempt€from€taxation€under€the€statutes€is€a€question€of€law€for€theÐ ž#î" Ðcourts.€€òòBook€Agents€of€the€Methodist€Episcopal€Church,€S.€v.€State€Bd.€of€Equalizationóó,€513€S.W.2dÐ ‡$×# Ð514,€521€(Tenn.€1974)(citing€òòOak€Ridge€Hosp.€v.€City€of€Oak€Ridgeóó,€420€S.W.2d€583€(Tenn.€1967)).Ð p%À $ ÐÌà  àIn€the€present€case,€the€parties€have€stipulated€to€the€facts.€€The€manner€in€which€YouthÐ B'’"& ÐPrograms€uses€its€property€is€not€disputed.€€The€only€question€before€the€trial€court€was€whether€thisÐ +({#' Ðpurpose€qualifies€the€property€for€tax€exempt€status€under€section€67„5„212.€€Therefore,€the€trialÐ )d$( Ðcourt€applied€the€correct€standard€of€review.Ð ý)M%) Ðâ âÐ æ*6&* Ðà  àWe€turn€next€to€whether€the€chancery€court€erred€in€determining€Youth€Programs€is€entitledÐ ° Ðâ âto€an€ad€valorem€property€tax€exemption€on€property€used€exclusively€for€the€tournament€to€raiseÐ ™é Ðfunds€for€St.€Jude.€€Article€2,€Section€28€of€the€Constitution€of€Tennessee€subjects€all€property€toÐ ‚Ò Ðtaxation€but€grants€authority€to€the€legislature€to€exempt€certain€properties,€including€propertiesÐ k» Ðð ðheld€and€used€for€purposes€purely€religious,€charitable,€scientific,€literary,€or€educational.ðð€€TheÐ T¤ Ðlegislature€has€exercised€this€authority€through€the€Tennessee€Code,€which,€as€currently€codified€atÐ =  Ð67„5„212,€provides:Ð & v ÐÌà8  à(a)(1)(A)€There€shall€be€exempt€from€property€taxation€the€real€and€personalÐ ø H Ðproperty,€or€any€part€thereof,€owned€by€any€religious,€charitable,€scientific€orÐ á 1  Ðnonprofit€educational€institution€which€is€occupied€and€used€by€such€institution€orÐ Ê   Ðits€officers€purely€and€exclusively€for€carrying€out€thereupon€one€(1)€or€more€of€theÐ ³  Ðpurposes€for€which€the€institution€was€created€or€exists,€or€which€is€occupied€andÐ œì  Ðused€by€another€exempt€institution€purely€and€exclusively€for€one€(1)€or€more€of€theÐ …Õ  Ðpurposes€for€which€it€was€created€or€exists€under€an€arrangement€whereunder€theÐ n¾  Ðowning€institution€receives€no€more€rent€than€one€dollar€($1.00)€per€year;€provided,Ð W§  Ðthat€the€owning€institution€may€receive€a€reasonable€service€and€maintenance€fee€forÐ @ Ðsuch€use€of€the€property;€and€provided€further,€that€if€the€owning€institution€ownsÐ )y Ðand€operates€real€and€personal€property€consisting€of€a€parking€garage€and€leasesÐ b Ðparking€spaces€in€such€parking€garage€to€a€metropolitan€hospital€authority€for€aÐ ûK Ðmetropolitan€government€hospital€and€the€staffing€for€such€hospital€by€a€medical€andÐ ä4 Ðdental€school,€such€parking€garage€shall€be€exempt€from€property€taxation,€providedÐ Í Ðthat€from€and€after€July€1,€2004,€such€parking€garage€shall€be€exempt€from€propertyÐ ¶ Ðtaxation€only€to€the€extent€parking€spaces€in€such€parking€garage€are€actually€leasedÐ Ÿï Ðby€the€metropolitan€government€hospital€authority;€and€provided€further,€that€noÐ ˆØ Ðchurch€shall€be€granted€an€exemption€on€more€than€one€(1)€parsonage,€which€shallÐ qÁ Ðinclude€not€more€than€three€(3)€acres€of€land€except€as€hereinafter€provided€in€thisÐ Zª Ðsubdivision€(a)(1);€and€provided€further,€that€no€property€shall€be€totally€exempted,Ð C“ Ðnor€shall€any€portion€thereof€be€pro€rata€exempted,€unless€such€property€or€portionÐ ,| Ðthereof€is€actually€used€purely€and€exclusively€for€religious,€charitable,€scientific€orÐ e Ðeducational€purposes.ÐþNÐ Ð  Ðà8  àà8` Ð Ð àà ¸ à(B)€Notwithstanding€the€limitations€contained€in€thisÐ ç 7 Ðsubdivision€(a)(1),€that€portion€of€the€real€property€owned€by€theÐ Ð!   Ðheadquarters€of€a€religious€institution,€which€was€previously€used€asÐ ¹" ! Ðthe€campus€of€a€college€owned€and€operated€by€such€institution€isÐ ¢#ò" Ðexempt€from€taxation,€if€such€real€property€is€leased€to€a€non-profitÐ ‹$Û# Ðorganization€exempted€from€the€payment€of€federal€income€taxes€byÐ t%Ä $ ÐInternal€Revenue€Code€(26€U.S.C.€ðð€501(c)(3))€which€is€leasing€theÐ ]&­!% Ðproperty€from€such€religious€institution€to€operate€a€kindergartenÐ F'–"& Ðthrough€grade€twelve€(K-12)€school€and€which€organization€has€beenÐ /(#' Ðaccredited€by€the€Tennessee€association€of€non-public€academicÐ )h$( Ðschools.€This€exemption€shall€be€granted€even€though€the€religiousÐ *Q%) Ðinstitution€is€receiving€more€than€a€reasonable€service€andÐ ê*:&* Ðmaintenance€fee€for€such€use€of€the€property€but€less€than€fair€marketÐ Ó+#'+ Ðvalue€through€a€lease€agreement€with€such€non-profit€organization.Ð ° ÐSuch€tax€exemption€shall€be€retroactive€to€the€first€use€andÐ ™é Ðreclassification€of€property€to€which€it€applies.ЂÒ` x` x Ðà8  àà ` à(2)€In€determining€the€exemption€applicable€to€a€post-secondary€educationalÐ k» Ðinstitution,€there€shall€be€a€presumption€that€the€entire€original€campus€of€anÐ T¤ Ðinstitution€chartered€before€1930€is€an€historical€and€integral€entity,€and€is€exemptÐ =  Ðso€long€as€no€particular€portion€of€such€campus€is€used€for€nonexempt€purposes.Ð& vÐ Ð  Ðà8  àà8` Ð Ð à(3)€The€property€of€such€institution€shall€not€be€exempt€if:Ð _` x` x Ðà8  àà8` Ð Ð àà ¸ à(A)€The€owner,€or€any€stockholder,€officer,€member€orÐ ø H Ðemployee€of€such€institution€shall€receive€or€may€be€lawfully€entitledÐ á 1  Ðto€receive€any€pecuniary€profit€from€the€operations€of€that€propertyÐ Ê   Ðin€competition€with€like€property€owned€by€others€which€is€notÐ ³  Ðexempt,€except€reasonable€compensation€for€services€in€effecting€oneÐ œì  Ð(1)€or€more€of€such€purposes,€or€as€proper€beneficiaries€of€its€strictlyÐ …Õ  Ðreligious,€charitable,€scientific€or€educational€purposes;€orÐn¾ ` x` x Ðà8  àà8` Ð Ð àà ¸ à(B)€The€organization€thereof€for€any€such€avowed€purpose€beÐ W§  Ða€guise€or€pretense€for€directly€or€indirectly€making€any€otherÐ @ Ðpecuniary€profit€for€such€institution,€or€for€any€of€its€members€orÐ )y Ðemployees,€or€if€it€be€not€in€good€faith€organized€or€conductedÐ b Ðexclusively€for€one€(1)€or€more€of€these€purposes.ÐûK` x` x Ðà8  àThe€real€property€of€any€such€institution€not€so€used€exclusively€for€carrying€outÐ ä4 Ðthereupon€one€(1)€or€more€of€such€purposes,€but€leased€or€otherwise€used€for€otherÐ Í Ðpurposes,€whether€the€income€received€therefrom€be€used€for€one€(1)€or€more€of€suchÐ ¶ Ðpurposes€or€not,€shall€not€be€exempt;€but€if€a€portion€only€of€any€lot€or€building€ofÐ Ÿï Ðany€such€institution€is€used€purely€and€exclusively€for€carrying€out€thereupon€one€(1)Ð ˆØ Ðor€more€of€such€purposes€of€such€institution,€then€such€lot€or€building€shall€be€soÐ qÁ Ðexempt€only€to€the€extent€of€the€value€of€the€portion€so€used,€and€the€remaining€orÐ Zª Ðother€portion€shall€be€subject€to€taxation.ÐC“Ð Ð  ÐÌTenn.€Code€Ann.€ðð€67„5„212(a)(Supp.€2004).€€In€Tennessee,€unlike€many€other€states,€tax€exemptionÐ e Ðstatutes€are€construed€liberally€in€favor€of€religious,€charitable,€scientific,€and€educationalÐ þN Ðinstitutions.€€òòBook€Agentsóó,€513€S.W.2d€at€521(citingòò€George€Peabody€Coll.€for€Teachers€v.€State€Bd.Ð ç 7 Ðof€Equalizationóó,€407€S.W.2d€443€(Tenn.€1966)).€€Ð Ð!   ÐÌà  àThe€parties€do€not€dispute€that,€under€section€67„5„212,€the€property€must€be€usedÐ ¢#ò" Ðexclusively€for€a€charitable€purpose€in€order€to€be€exempt€from€property€taxation.€€Rather,€the€partiesÐ ‹$Û# Ðraise€the€issue€of€what€constitutes€a€charitable€use€under€the€Code.€€Youth€Programs€asserts€that€itÐ t%Ä $ Ðis€exempt€from€taxation€under€section€67„5„212€because€it€is€a€non„profit,€charitable€organizationÐ ]&­!% Ðwhich€uses€the€property€exclusively€for€its€stated€charitable€purpose€of€raising€funds€for€St.€JudeÐ F'–"& Ðthrough€the€tournament.׃×Ý ƒ #ÃÝòòÚ  Ú3Ú  ÚóóÝ  Ý×  ×€€The€State€does€not€argue€that€proceeds€from€the€tournament€do€not€inureÐ /(#' Ðto€the€benefit€of€St.€Jude.€€Rather,€the€State€asserts€that€Youth€Programs€confuses€its€charitableÐ )h$( Ðpurpose€(raising€funds€for€St.€Jude)€with€a€commercial€activity€it€undertakes€in€order€to€raise€theseÐ ° Ðfunds€(the€tournament).€€The€State€contends€that€when€Youth€Programs€conducts€the€tournament,Ð ™é Ðit€is€embarking€in€a€business€for€profit.€€It€argues€that€the€fact€that€Youth€Programs€donates€theÐ ‚Ò Ðprofits€to€St.€Jude€does€not€change€the€nature€of€the€tournament,€which€is€a€commercial€enterprise.€Ð k» ÐIn€support€of€its€argument,€the€State€citesòò€Mid„State€Baptist€Hospital,€Inc.€v.€City€of€Nashvilleóó,€366Ð T¤ ÐS.W.2d€769,€772€(Tenn.€1963),€wherein€the€Tennessee€Supreme€Court€held:€ð ðwhen€a€charityÐ =  Ðembarks€in€business€for€profit€it€becomes€liable€for€taxation€as€any€other€business€establishment.ðð€Ð & v ÐÌÌà  àThus,€the€question€before€this€Court€is€whether€the€exclusive€use€of€the€property€as€aÐ á 1  Ðstaging/parking€area€for€the€tournament,€where€the€property€is€owned€by€a€charitable€organizationÐ Ê   Ðand€where€the€proceeds€generated€by€the€property€benefit€another€charitable€organization,€constitutesÐ ³  Ða€charitable€use€under€the€statute.€€As€the€parties€agree,€there€is€no€previously€reported€TennesseeÐ œì  Ðcase€involving€the€same€factual€circumstances.€€After€reviewing€the€reasoning€contained€in€the€bodyÐ …Õ  Ðof€Tennessee€case€law,€however,€and€in€light€of€the€purposes€of€the€statute€and€the€liberalÐ n¾  Ðconstruction€afforded€to€it,€we€hold€that€the€property€which€is€the€subject€of€this€lawsuit€is€exemptÐ W§  Ðfrom€property€taxation€under€section€67„5„212.Ð @ ÐÌà  àTennessee€courts€have€held€that,€in€order€to€be€exempt€from€taxation,€property€owned,Ð b Ðoccupied,€and€used€by€a€charitable€institution€must€be€used€exclusively€for€carrying€out€one€or€moreÐ ûK Ðof€the€purposes€for€which€the€institution€exists€or€for€a€purpose€which€is€directly€incidental€to€theÐ ä4 Ðinstitutionððs€purpose.òò€€City€of€Nashville€v.€State€Bd.€of€Equalizationóó,€360€S.W.2d€458,€466€(Tenn.Ð Í Ð1962);€òòGeorge€Peabody€Coll.€for€Teachers€v.€State€Bd.€of€Equalizationóó,€407€S.W.2d€443,€446€(Tenn.Ð ¶ Ð1966).€€It€is€use€of€the€property,€and€not€the€charitable€nature€of€its€owner,€which€determines€itsÐ Ÿï Ðexempt€status.€€òòMid„State€Baptist€Hosp.,€Inc.€v.€City€of€Nashvilleóó,€366€S.W.2d€769,€772€(Tenn.Ð ˆØ Ð1963).€€Property€that€is€used€by€a€charity€embarking€on€a€business€for€profit€on€that€propertyÐ qÁ Ðbecomes€liable€for€taxation.€òòóóÔ#†XΧXXXæò *#ÔÔ‡XæòXXXΧÔ€òòId.Ô#†XΧXXXæò b#ÔÔ‡XæòXXXΧÔóó€Ð Zª ÐÌà  àThe€State€relies€heavily€on€òòCity€of€Nashville€v.€State€Board€of€Equalizationóó,€360€S.W.2d€458Ð ,| Ð(Tenn.€1962),€òòMid„State€Baptist€Hospital,€Inc.€v.€City€of€Nashvilleóó,€366€S.W.2d€769€(Tenn.€1963),Ð e Ðand€òòBook€Agents€of€the€Methodist€Episcopal€Church€v.€State€Board€of€Equalizationóó,€513€S.W.2d€514Ð þN Ð(Tenn.€1974),€cases€in€which€the€supreme€court€considered€the€status€of€property€used€by€non„profitÐ ç 7 Ðinstitutions.€€Inòò€City€of€Nashvilleóó,€the€property€in€dispute€was€owned€by€the€Sunday€School€BoardÐ Ð!   Ðof€the€Southern€Baptist€Convention€(ð ðthe€Sunday€School€Boardðð),€whose€principal€activity€was€theÐ ¹" ! Ðpublication€and€sale€of€religious€materials€and€publications€to€churches€in€the€Southern€BaptistÐ ¢#ò" ÐConvention€and€their€members.€€Ô#†XΧXXXæòib#ÔÔ‡XæòXXXΧÔ€òòÔ#†XΧXXXæòBf#ÔÔ‡XæòXXXΧÔCity€of€Nashvilleóó,€360€S.W.2d€Ô#†XΧXXXæòˆf#ÔÔ‡XæòXXXΧÔat€òòóóÔ#†XΧXXXæòëf#ÔÔ‡XæòXXXΧÔ460.€€The€City€of€Nashville€arguedÐ ‹$Û# Ðthat€the€portion€of€the€Sunday€School€Boardððs€property€used€for€the€parking€lots,€cafeteria,€and€snackÐ t%Ä $ Ðbar€were€not€used€for€the€purposes€stated€in€the€Sunday€School€Boardððs€charter€and€that€they€wereÐ ]&­!% Ðnot,€therefore,€exempt€from€taxation.€€Ô#†XΧXXXæò6g#ÔÔ‡XæòXXXΧÔòòId.óóÔ#†XΧXXXæòÍh#ÔÔ‡XæòXXXΧÔ€at€461.€€The€Sunday€School€Board,€on€the€other€hand,Ð F'–"& Ðargued€that€these€portions€of€its€property€were€being€used€ð ðòòeitheróó€purely€and€exclusively€forÐ /(#' Ðreligious€purposes€òòor€for€purposes€so€close€thereto€óóas€to€come€within€the€exemption€provided€by€theÐ )h$( Ðstatute.ðð€€òòIdóó.Ð *Q%) Ðâ âÐ ê*:&* ÐÓ °X°œXÓà  àThe€court€in€òòCity€of€Nashville€óóanalyzed€the€evolution€of€the€exemption€statutes€and€case€lawÐ ° Ðâ âand€stated,€ð ðit€is€seen€that€the€scope€of€tax€exemption€of€property€of€such€institutions€has€beenÐ ™é Ðsteadily€narrowed€by€decisions€of€this€Court€under€our€successive€revenue€acts[.]ðð€òòCity€of€NashvilleÐ ‚Ò Ðv.€State€Bd.€of€Equalizationóó,€360€S.W.3d€458,€464€(Tenn.€1962).€€The€court€noted€that€the€statuteÐ k» Ðlimited€the€exemption€to€property€òòð ðoccupiedððóó€by€an€exempt€institution€òòð ðexclusivelyðð€óófor€carryingÐ T¤ Ðout€the€ð ðpurposes€for€which€the€institution€was€created€or€exists.ðð€€Ô#†XΧXXXæòi#ÔÔ‡XæòXXXΧÔòòId.óóÔ#†XΧXXXæòÜm#ÔÔ‡XæòXXXΧÔ€at€465.€€It€further€noted€thatÐ =  Ðproperty€is€not€exempt€where€it€is€not€used€òòð ðexclusivelyðð€óófor€carrying€out€the€purposes€of€theÐ & v Ðinstitution€or€where€anyone€receives€or€is€entitled€to€receive€ð ðany€pecuniary€profit€from€theÐ  _ Ðoperations€of€that€property€in€competition€with€like€property€owned€by€others€which€is€not€exempt.ðð€Ð ø H ÐÔ#†XΧXXXæò'n#ÔÔ‡XæòXXXΧÔòòId.óóÔ#†XΧXXXæò p#ÔÔ‡XæòXXXΧÔ€at€465„66.Ð á 1  Ѐ€Ð Ê   Ðà  àThe€òòCity€of€Nashville€óócourt€òòóóopined,€Ð ³  ÐÌà8  à[w]e€think,€however,€it€can€hardly€be€said€that€the€[Sunday€School]€Boardððs€use€ofÐ …Õ  Ðthese€parts€of€its€real€estate,€as€above€described,€for€the€operation€of€its€parking€lots,Ð n¾  Ðcafeteria,€and€snack€bar,€is€a€use€ððfor€purposes€òòpurely€religiousóó,ðð€as€contemplated€inÐ W§  Ðour€Constitution€(Art.€2,€sec.€28),€or€a€use€ððòòexclusivelyóóðð€for€a€òòreligious€purpose€óóof€itsÐ @ Ðcharter,€as€contemplated€by€the€Act€of€1935.Ð)yÐ Ð  ÐÌòòId.óó€at€467.€€Despite€the€fact€that€the€portions€of€the€property€in€question€were€used€only€by€theÐ ûK ÐSunday€School€Boardððs€employees€and€were€not€operated€for€profit,€the€court€found,€ð ðsuchÐ ä4 Ðoperations€are€not€religious€activities,€but€are€secular€business€enterprises,€carried€on€in€competitionÐ Í Ðwith€other€like€businesses€that€pay€taxes€to€the€state,€the€county,€and€the€city;€and€such€businessesÐ ¶ Ðare€taxed€as€a€privilege.ðð€€Ô#†XΧXXXæòXp#ÔÔ‡XæòXXXΧÔòòId.óóÔ#†XΧXXXæòPu#ÔÔ‡XæòXXXΧÔ€€It€held€that€since€the€Sunday€School€Board€did€not€use€these€portionsÐ Ÿï Ðof€their€property€€ð ðexclusivelyðð€for€religious€purposes,€the€property€used€for€parking€lots,€a€cafeteria,Ð ˆØ Ðand€a€snack€bar€were€not€exempt€from€taxation.€€òòÔ#†XΧXXXæò›u#ÔÔ‡XæòXXXΧÔId.Ô#†XΧXXXæòðv#ÔÔ‡XæòXXXΧÔóóÐ qÁ ÐÌà  àIn€òòMid„State€Baptist€Hospitalóó,€the€supreme€court€addressed€the€question€of€when€propertyÐ C“ Ðthat€had€been€exempt€from€taxation€would€become€taxable€where€a€portion€of€the€property€was€underÐ ,| Ðconstruction€and€that€portion€was€to€be€used€commercially.€€òòMid„State€Baptist€Hosp.,€Inc.€v.€City€ofÐ e ÐNashvilleóó,€366€S.W.2d€769€(Tenn.€1963).€€The€City€of€Nashville€argued€that,€because€the€propertyÐ þN Ðwas€under€construction,€it€was€not€being€used€exclusively€for€the€charitable€purposes€for€which€theÐ ç 7 ÐHospital€was€built€and€that€it€was,€therefore,€subject€to€taxation.€Ô#†XΧXXXæò5w#ÔÔ‡XæòXXXΧÔ€òòId.óóÔ#†XΧXXXæò5z#ÔÔ‡XæòXXXΧÔ€at€772.€€Noting€TennesseeððsÐ Ð!   Ðliberal€construction€of€a€tax€exemption€in€favor€of€charitable€institutions,€the€court€held,€ð ð[w]hen€realÐ ¹" ! Ðproperty€is€not€on€the€tax€rolls€by€reason€of€being€exempt€it€should€take€òòuseóó€to€put€it€back€on,€notÐ ¢#ò" Ðintention.ðð€€Ô#†XΧXXXæòz#ÔÔ‡XæòXXXΧÔòòId.óóÔ#†XΧXXXæò|#ÔÔ‡XæòXXXΧÔ€at€773.€€The€supreme€court€affirmed€the€chancellorððs€determination€that€the€HospitalÐ ‹$Û# Ðwould€not€be€liable€for€the€tax€on€the€property€under€construction€until€the€year€in€which€it€was€putÐ t%Ä $ Ðto€commercial€use.€Ô#†XΧXXXæòR|#ÔÔ‡XæòXXXΧÔ€òòId.óóÔ#†XΧXXXæòŽ}#ÔÔ‡XæòXXXΧÔ€€Ð ]&­!% ÐÌà  àThe€supreme€court€re„visited€the€issue€of€what€constitutes€use€for€the€purposes€of€exemptionÐ /(#' Ðfrom€taxation€in€òòGeorge€Peabody€College€for€Teachers€v.€State€Board€of€Equalizationóó,€407€S.W.2dÐ )h$( Ð443€(Tenn.€1966).€€In€òòGeorge€Peabody€Collegeóó,€the€court€considered€whether€facilities€owned€byÐ *Q%) Ðâ âan€educational€institution€and€used€as€student€housing€were€subject€to€property€taxation€to€the€extentÐ ê*:&* Ðthey€were€occupied€by€family€members€of€the€students.€€òòIdóó.׃×Ý ƒ #ÃÝòòÚ  Ú4Ú  ÚóóÝ  Ý×  ×€€The€òòGeorge€Peabody€College€óócourtÐ ° Ðâ ânoted€that€the€courts€below€had€ð ðobviously€relied€upon€the€prior€interpretation€and€application€byÐ ™é Ðthis€Court€of€T.C.A.€s67„502(2)€in€City€of€Nashville€v.€State€Board€of€Equalizationðð€whenÐ ‚Ò Ðdetermining€the€property€was€not€exempt€from€taxation.€Ô#†XΧXXXæòÚ}#ÔÔ‡XæòXXXΧÔ€òòÔ#†XΧXXXæò%‚#ÔÔ‡XæòXXXΧÔId.Ô#†XΧXXXæòk‚#ÔÔ‡XæòXXXΧÔóó€€It€further€noted€and€emphasized,Ð k» Ðhowever,€that,€Ð T¤ ÐÌà8  à[s]ince€the€decision€in€that€case,€this€Court€in€òòMid„State€Baptist€Hospital,€Inc.€v.€CityÐ & v Ðof€Nashvilleóó,€211€Tenn.€599,€366€S.W.2d€769€(1963),€has€emphatically€restated€theÐ  _ Ðproposition€that€in€this€State,€contrary€to€most€other€states,€tax€exemption€in€favor€ofÐ ø H Ðreligious,€scientific,€literary€and€educational€institutions€are€liberally€construed€ratherÐ á 1  Ðthan€strictly.€€It€is€further€pointed€out€that€the€opinion€in€City€of€Nashville€v.€StateÐ Ê   ÐBoard€of€Equalization€.€.€.€€in€nowise€dilutes€the€rule€of€liberal€interpretation.€Ð³ Ð Ð  ÐÌòòId.óó€at€445.Ð …Õ  ÐÌòòóóà  àAfter€reviewing€the€history€of€Tennessee€statutes€granting€tax€exempt€status€to€religious,Ð W§  Ðcharitable,€scientific,€and€educational€institutions,€theòò€George€Peabody€College€óócourt€noted€that€theÐ @ Ðprincipal€underlying€the€several€versions€of€the€statutory€exemption€with€regard€to€the€exclusive€useÐ )y Ðrequirement€has€remained€the€same.€€ð ð[T]hat€is,€that€when€property€is€used€for€a€purpose€directlyÐ b Ðincidental€to€the€primary€purpose,€[in€this€case]€education,€it€is€to€be€regarded€as€exempt€fromÐ ûK Ðtaxation.€€The€wisdom€imparted€in€.€.€.€[òòState€v.€Fisk€Universityóó,€87€Tenn.€233,€10€S.W.€284€(1888)]Ð ä4 Ðis€as€valid€now€as€it€was€at€the€time€of€delivery€in€1888.ðð€€Ô#†XΧXXXæò°‚#ÔÔ‡XæòXXXΧÔ€òòId.óóÔ#†XΧXXXæòC‰#ÔÔ‡XæòXXXΧÔ€€The€òòGeorge€Peabody€College€óócourtÐ Í Ðheld€that€the€housing€facilities€provided€by€the€college€to€students€and€their€spouses€and€childrenÐ ¶ Ðwere€directly€incidental€to,€and€an€integral€part€of,€the€educational€purposes€of€the€college€and€were,Ð Ÿï Ðtherefore,€exempt€from€property€taxation.€€Ô#†XΧXXXæò‰#ÔÔ‡XæòXXXΧÔ€òòId.óóÔ#†XΧXXXæò-‹#ÔÔ‡XæòXXXΧÔ€at€446.€€Ð ˆØ ÐÌà  àIn€òòBook€Agentsóó,€the€supreme€court€again€considered€the€status€of€property€belonging€to€aÐ Zª Ðreligious€institution€engaged€in€publishing€and€printing.€€òòBook€Agents€of€the€Methodist€EpiscopalÐ C“ ÐChurch€v.€State€Bd.€of€Equalizationóó,€513€S.W.2d€514€(Tenn.€1974).€€The€court€held€that€the€portionÐ ,| Ðof€property€used€for€the€printing€and€publication€of€materials€related€to€the€religious€purpose€of€theÐ e Ðinstitution€(Sunday€school€curriculum€materials,€officer€training€manuals,€commentaries€onÐ þN Ðdenominational€government€and€similar€literature)€were€exempt€from€taxation.€Ô#†XΧXXXæòy‹#ÔÔ‡XæòXXXΧÔ€òòId.óóÔ#†XΧXXXæò„Ž#ÔÔ‡XæòXXXΧÔ€at€524.€€€It€furtherÐ ç 7 Ðheld€that€the€publishing€and€printing€of€secular€materials€and€commercial€printing€were€not€exemptÐ Ð!   Ðâ âuses€of€the€property.€€Ô#†XΧXXXæòÐŽ#ÔÔ‡XæòXXXΧÔòòId.óóÔ#†XΧXXXæòÔ#ÔÔ‡XæòXXXΧÔ€at€524„25.€€The€òòBook€Agents€óócourt€affirmed€the€chancellorððs€order€that€aÐ ¹" ! Ðð ðtax€be€levied€to€the€extent€of€the€dollar€volume€of€exempt€activity€as€compared€with€the€entireÐ ° Ðdollar€volume€of€business€done€by€the€property€owners.ðð׃×Ý ƒ #ÃÝòòÚ  Ú5Ú  ÚóóÝ  Ý×  ×€€Ô#†XΧXXXæò#ÔÔ‡XæòXXXΧÔòòId.óóÔ#†XΧXXXæòÏ‘#ÔÔ‡XæòXXXΧÔ€at€525.€€Ð ™é Ðâ âÌà  àIn€reaching€its€holding,€the€òòBook€Agents€óócourt€recognized€that€ð ð[t]he€exclusive€useÐ k» Ðrequirement€has€been€interpreted€to€refer€to€the€direct,€physical€use€of€property€rather€than€theÐ T¤ Ðultimate€use€of€proceeds€from€the€activity.ðð€Ô#†XΧXXXæò’#ÔÔ‡XæòXXXΧÔ€òòId.óóÔ#†XΧXXXæò©“#ÔÔ‡XæòXXXΧÔ€at€523.€€The€court€further€noted€that€the€fact€that€theÐ =  Ðinstitution€uses€its€property€in€competition€with€tax„paying€businesses€is€relevant€but€notÐ & v Ðdeterminative€to€tax€exempt€status.€€Ô#†XΧXXXæòõ“#ÔÔ‡XæòXXXΧÔ€òòId.óóÔ#†XΧXXXæò•#ÔÔ‡XæòXXXΧÔ€€The€court€stated,€ð ð[o]ther€companies€could€compete€withÐ  _ Ðan€institutionððs€efforts€to€accomplish€an€exempt€institutional€purpose,€but€circumstances€mayÐ ø H Ðindicate€that€the€purpose€is€not€exempt.ðð€€Ô#†XΧXXXæòe•#ÔÔ‡XæòXXXΧÔòòId.óóÔ#†XΧXXXæò›–#ÔÔ‡XæòXXXΧÔ€€€In€sum,€the€determinative€question€was€not€solelyÐ á 1  Ðwhether€the€use€of€the€property€could€be€considered€fundamentally€commercial€in€nature,€butÐ Ê   Ðwhether€the€property€was€used€for€the€stated€purposes€for€which€the€exempt€institution€was€createdÐ ³  Ðor€exists.€Ð œì  ÐÌà  àIn€1984,€the€supreme€court€again€considered€the€tax€status€of€property€incidental€to€the€statedÐ n¾  Ðpurposes€of€an€exempt€institution.€€Inòò€Methodist€Hospitals€of€Memphisóó,€the€State€sought€to€levy€anÐ W§  Ðad€valorem€property€tax€on€a€parking€lot€owned€by€the€Hospital€and€used€to€provide€free€parking€toÐ @ ÐHospital€employees.€€òò€Methodist€Hosps.€of€Memphis€v.€Assessment€Appeals€Commððnóó,€669€S.W.2dÐ )y Ð305,€306€(Tenn.€1984).€€The€òòMethodist€Hospitals€óócourt€noted€an€apparent€conflict€in€the€law€due€toÐ b Ðthe€courtððs€interpretation€of€the€requirement€that€exempt€property€must€be€used€ð ðpurely€andÐ ûK Ðexclusivelyðð€for€the€institutionððs€purpose.€Ô#†XΧXXXæòæ–#ÔÔ‡XæòXXXΧÔ€òòId.óóÔ#†XΧXXXæòŠ›#ÔÔ‡XæòXXXΧÔ€€The€court€stated,€however,€ð ð[i]n€a€series€of€casesÐ ä4 Ðdecided€since€òòCity€of€Nashville€v.€State€Board€of€Equalization€óó.€.€.€this€court€has€held€that€the€useÐ Í Ðrequirement€for€property€to€be€exempt€is€met€where€the€use€is€ððdirectly€incidental€to€or€an€integralÐ ¶ Ðpart€ofðð€one€of€the€recognized€purposes€of€an€exempt€institution.ðð€€òòIdóó.Ô#†XΧXXXæòÖ›#ÔÔ‡XæòXXXΧÔ€Ô#†XΧXXXæò³#ÔÔ‡XæòXXXΧÔ€at€307.€€Noting€the€mobilityÐ Ÿï Ðof€contemporary€society€and€the€need€to€provide€safe,€convenient€parking€around„the„clock€toÐ ˆØ Ðemployees,€the€court€held€the€Hospital€employee€parking€lot€was€exempt€from€taxation€as€anÐ ° Ðð ðessential€and€integral€partðð€of€the€Hospital.€€òòÔ#†XΧXXXæòö#ÔÔ‡XæòXXXΧÔId.Ô#†XΧXXXæòƒŸ#ÔÔ‡XæòXXXΧÔóó€€Similarly,€in€òòShared€Hospital€Services€CorporationÐ ™é Ðv.€Fergusonóó,€the€supreme€court€held€that€the€laundry€facilities€of€a€non„profit€cooperative€whoseÐ ‚Ò Ðmembers€were€hospitals€and€which€supplied€laundry€services€to€those€members€was€exempt€fromÐ k» Ðtaxationòò.€€€Shared€Hosp.€Servs.€Corp.€v.€Fergusonóó,€673€S.W.2d€135€(Tenn.€1984).€€In€that€case,€theÐ T¤ ÐState€argued€that€Shared€Hospital€Services€was€a€large€commercial€laundry€which€operated€in€directÐ =  Ðcompetition€with€similar€tax„paying€enterprises.€€Ô#†XΧXXXæòÈŸ#ÔÔ‡XæòXXXΧÔ€òòId.óóÔ#†XΧXXXæòh¢#ÔÔ‡XæòXXXΧÔ€at€137.€€The€State€further€contended€theÐ & v Ðfacilityððs€lunchroom€and€parking€lot€were€subject€to€taxation€under€òòCity€of€Nashvilleóó.€€Ô#†XΧXXXæò´¢#ÔÔ‡XæòXXXΧÔòòId.óóÔ#†XΧXXXæò•£#ÔÔ‡XæòXXXΧÔ€€€TheÐ  _ Ðsupreme€court€held€the€parking€lot€was€exempt€under€òòMethodist€Hospitals,€óóand€that€the€lunchroomÐ ø H Ðalso€was€exempt.€€The€court€further€held€that€laundry€services€were€part€of€hospital€operations,€andÐ á 1  Ðthat€the€property€of€the€non„profit€corporation€formed€solely€to€provide€those€services€was€exemptÐ Ê   Ðfrom€taxation.€€Ô#†XΧXXXæòà£#ÔÔ‡XæòXXXΧÔ€òòId.óóÔ#†XΧXXXæò·¥#ÔÔ‡XæòXXXΧÔ€at€139.€€Ð ³  ÐÌà  àSubsequent€to€the€supreme€courtððs€holding€in€òòShared€Hospital€Servicesóó,€this€CourtÐ …Õ  Ðconsidered€whether€a€gift€shop€located€within€a€hospital,€operated€by€the€hospital,€and€staffed€byÐ n¾  Ðvolunteers€was€exempt€from€taxation€under€section€67„5„212.òò€€Middle€Tenn.€Med.€Ctr.€v.€AssessmentÐ W§  ÐAppeals€Commððnóó,€No.€01A01„9307„CH„00324,€1994€WL€32584€(Tenn.€Ct.€App.€Feb.€4,Ð @ Ð1994)(perm.€app.€denied€May€9,€1994).€€In€òòMiddle€Tennessee€Medical€Centeróó,€we€held€that€the€giftÐ )y Ðshop€was€ð ða€traditional€hospital€functionðð€and€was€ð ðððdirectly€incidental€to€or€an€integral€part€ofðð€theÐ b Ðcharitable€function€of€the€medical€center.ðð€Ô#†XΧXXXæò¦#ÔÔ‡XæòXXXΧÔ€òòId.óó€at€*4.Ô#†XΧXXXæòn©#ÔÔ‡XæòXXXΧÔ€€Accordingly,€we€held€the€gift€shop€was€exemptÐ ûK Ðfrom€taxation€under€the€section.€€òòIdóó.€€We€further€determined€that€an€exercise€or€wellness€centerÐ ä4 Ðlocated€in€the€hospital€but€advertised€to€the€general€public€was€exempt€only€to€the€extent€that€it€wasÐ Í Ðutilized€by€patients€under€a€doctorððs€care.€€Ô#†XΧXXXæòÁ©#ÔÔ‡XæòXXXΧÔ€òòId.óóÔ#†XΧXXXæòm«#ÔÔ‡XæòXXXΧÔ€at€*5.€€Ð ¶ ÐÌà  àThis€Court€recently€determined€that€certain€real€properties€owned€by€€religious€institutionsÐ ˆØ Ðwere€not€exempt€from€taxation€inòò€First€Presbyterian€Church€of€Chattanoogaóó€and€òòChristian€HomeÐ qÁ Ðfor€the€Agedóó.€€In€òòFirst€Presbyterianóó,€we€considered€the€tax€status€of€a€house€owned€by€a€church€andÐ Zª Ðused€for€the€convenience€of€missionaries€on€home€assignment.òò€€€First€Presbyterian€Church€ofÐ C“ ÐChattanooga€v.€Tennessee€Bd.€of€Equalizationóó,€127€S.W.3d€742€(Tenn.€Ct.€App.€2003)(perm.€app.Ð ,| Ðdenied€Feb.€2,€2004).€€The€property€in€dispute€in€òòFirst€Presbyterian€óówas€church€property€used€toÐ e Ðprovide€housing€to€overseas€missionaries€temporarily€returning€to€the€United€States.€€Ô#†XΧXXXæò¹«#ÔÔ‡XæòXXXΧÔ€òòId.óóÔ#†XΧXXXæòK¯#ÔÔ‡XæòXXXΧÔ€€It€also€wasÐ þN Ðoccupied€temporarily€by€a€church€minister€who€was€relocating€to€Chattanooga€while€he€wasÐ ç 7 Ðsearching€for€permanent€housing.€€Ô#†XΧXXXæò—¯#ÔÔ‡XæòXXXΧÔòòId.óóÔ#†XΧXXXæòŠ°#ÔÔ‡XæòXXXΧÔ€€We€held€that€although€the€churchððs€mission€projects€wereÐ Ð!   Ðcommendable,€the€use€of€property€as€temporary€housing€for€the€convenience€of€overseesÐ ¹" ! Ðmissionaries€was€not€ð ðreasonably€necessary€to€a€missionary€being€able€to€accomplish€the€ChurchððsÐ ¢#ò" Ðreligious€purposeðð€and,€therefore,€was€not€within€the€statutory€exemption.€€Ô#†XΧXXXæòÕ°#ÔÔ‡XæòXXXΧÔòòId.óóÔ#†XΧXXXæò²#ÔÔ‡XæòXXXΧÔ€at€748„49.€€Similarly,Ð ‹$Û# Ðinòò€Christian€Home€for€the€Agedóó,€we€determined€that€retirement€community€property€owned€by€aÐ t%Ä $ Ðreligious€institution€was€not€exempt€from€taxation€under€section€67„5„212(a).òò€€€Christian€Home€forÐ ]&­!% Ðthe€Aged,€Inc.€v.€Tennessee€Assessment€Appeals€Commððn.óó,€790€S.W.2d€288,€291€(Tenn.€Ct.€App.Ð F'–"& Ð1990)(perm.€app.€denied€May€7,€1990).€Inòò€Christian€Home€for€the€Agedóó,€we€noted€that€the€propertyÐ /(#' Ðprimarily€was€occupied€for€residential€purposes€and€not€to€further€any€religious€purpose.€Ô#†XΧXXXæòè²#ÔÔ‡XæòXXXΧÔ€òòÔ#†XΧXXXæò‘µ#ÔÔ‡XæòXXXΧÔId.Ô#†XΧXXXæò×µ#ÔÔ‡XæòXXXΧÔóó€Ð )h$( ÐFurther,€the€residential€facilities€were€not€offered€without€rent€or€donations€but€were€available€onlyÐ *Q%) Ðto€those€who€were€financially€able€to€afford€them€and€who€had€been€ð ðscrutinized€for€financial€abilityÐ ê*:&* Ðas€well€as€moral€character€and€physical€condition.ðð€€Ô#†XΧXXXæò¶#ÔÔ‡XæòXXXΧÔ€òòId.óóÔ#†XΧXXXæò§·#ÔÔ‡XæòXXXΧÔ€at€292.€€We€accordingly€held€that€the€chapelÐ Ó+#'+ Ðlocated€within€the€retirement€community€qualified€for€exemption€from€taxation,€but€that€theÐ ° Ðresidential€facilities€did€not.€€Ô#†XΧXXXæòó·#ÔÔ‡XæòXXXΧÔòòId.óóÔ#†XΧXXXæò¹#ÔÔ‡XæòXXXΧÔ€€Ð ™é ÐÌà  àIn€the€case€now€before€this€Court,€the€State€does€not€dispute€that€Youth€Programs€is€a€non„Ð k» Ðprofit€organization,€nor€does€it€assert€that€Youth€Programs€does€not,€in€fact,€donate€the€proceeds€ofÐ T¤ Ðthe€tournament€to€another€charitable€institution.€€The€State€also€does€not€dispute€that€YouthÐ =  ÐPrograms€was€created€for€the€purpose€of€raising€funds€for€other€charities€or€that,€since€1970,€YouthÐ & v ÐPrograms€has€existed€to€raise€funds€for€St.€Jude€through€the€tournament.€€Rather,€in€its€argument,Ð  _ Ðthe€State€asserts€that€ð ðthe€fact€that€Youth€Programs€donates€large€sums€of€money€to€a€charitableÐ ø H Ðinstitution€does€not€make€Youth€Programs€a€charitable€institution€within€the€meaning€of€this€stateððsÐ á 1  Ðproperty€tax€exemption€statutes.ðð€€The€State€further€contends€that€the€property€is€not€exempt€becauseÐ Ê   Ðthe€use€of€the€property€as€a€parking€lot/staging€area€for€the€tournament€is€a€revenue„generatingÐ ³  Ðenterprise€and€not€a€charitable€endeavor.€€The€Stateððs€argument€is€that,€although€Youth€ProgramsÐ œì  Ðuses€the€property€exclusively€for€its€stated€purpose€of€raising€funds€for€charities€(in€this€situation,Ð …Õ  ÐSt.€Jude),€the€fund„raising€event€itself€is€fundamentally€commercial€in€nature.€€Additionally,€theÐ n¾  ÐState€asserts€that,€because€Youth€Programs€uses€the€property€for€only€one€month€a€year,€its€use€isÐ W§  Ðð ðòòde€minimusóóðð€and€does€not€justify€removal€of€the€property€from€the€tax€rolls.Ð @ ÐÌà  àWe€first€turn€to€the€Stateððs€assertion€that€Youth€Programs€is€not€a€charitable€institution€forÐ b Ðpurposes€of€the€tax€exemption€statutes€and,€therefore,€is€not€exempt€from€ad€valorem€propertyÐ ûK Ðtaxation€under€section€67„5„212(a).€€In€order€to€be€exempt€from€taxation€under€section€67„5„212(a),Ð ä4 Ðthe€institution€must€qualify€as€charitable.€€òòShared€Hosp.€Servs.€Corp.€v.€Fergusonóó,€673€S.W.2d€135,Ð Í Ð137€(Tenn.€1984).€€This€poses€the€question€of€whether€institutions€which€exist€solely€to€raise€fundsÐ ¶ Ðfor€other€charities€and€which,€therefore,€do€not€òòthemselvesóó€engage€in€religious,€scientific,Ð Ÿï Ðeducational,€or€medical€activities,€or€in€the€traditionally€recognized€ð ðgood€worksðð€activities€ofÐ ˆØ Ðfeeding€the€poor€or€housing€the€homeless,€should€be€considered€charitable€as€contemplated€by€theÐ qÁ Ðstatutes.Ð Zª ÐÌà  àIn€considering€this€question,€we€again€note€that€Tennessee€historically€has€construed€itsÐ ,| Ðexemption€statutes€liberally€in€favor€of€charitable€institutions€in€recognition€that€such€institutionsÐ e Ðconfer€a€benefit€on€the€public€and€consequently€relieve,€to€some€extent,€the€stateððs€burden€to€careÐ þN Ðfor€and€advance€the€interests€of€its€citizens.€€òòBook€Agents€of€the€Methodist€Episcopal€Church€v.€StateÐ ç 7 ÐBd.€of€Equalizationóó,€513€S.W.2d€514,€521€(Tenn.€1974)(quoting€òòM.€E.€Church,€S.€v.€Hintonóó,€21€S.W.Ð Ð!   Ð321,€322€(Tenn.€1893)).€€At€the€same€time,€however,€we€must€balance€this€construction€against€theÐ ¹" ! Ðð ðfundamental€rule€that€all€property€shall€be€taxed€and€bear€its€just€share€of€the€cost€of€government,Ð ¢#ò" Ðand€no€property€shall€escape€this€common€burden,€unless€it€has€been€duly€exempted€by€organic€orÐ ‹$Û# Ðstatute€law[.]ððòò€€City€of€Nashville€v.€State€Bd.€of€Equalizationóó,€360€S.W.2d€458,€461€(Tenn.Ð t%Ä $ Ð1962)(citations€omitted).€€Further,€not€every€use€of€property€by€a€charitable€institution€isÐ ]&­!% Ðautomatically€entitled€to€an€exemption€merely€because€it€can€be€characterized€as€generallyÐ F'–"& Ðpromoting€the€institutionððs€purpose€in€some€way,€particularly€where€the€use€is€a€revenue„generatingÐ /(#' Ðone.€€òòSeeóó€òòMiddle€Tennessee€Med.€Ctr.€v.€Assessment€Appeals€Commððnóó,€No.€01A01„9307„CH„00324,Ð )h$( Ð1994€WL€32584,€at€*€5€(Tenn.€Ct.€App.€Feb.€4,€1994)(òòperm.€app.€denied€óóMay€9,€1994).€Ð *Q%) Ðâ âÐ ê*:&* Ðà  àThe€Code€defines€a€charitable€institution€as€ð ðany€nonprofit€organization€or€associationÐ ° Ðâ âdevoting€its€efforts€and€property,€or€any€portion€thereof,€exclusively€to€the€improvement€of€humanÐ ™é Ðrights€and/or€conditions€in€the€community.ðð€€Tenn.€Code€Ann.€ðð€67„5„212(c)(Supp.€2004).€€In€lightÐ ‚Ò Ðof€the€supreme€courtððs€holding€in€òòShared€Hospital€Servicesóó,€discussed€above,€we€believe€YouthÐ k» ÐPrograms€qualifies€as€a€charitable€institution€for€purposes€of€Tennesseeððs€tax€exemption€statutes.׃W×Ý ƒ #ÃÝòòÚ  Ú6Ú  ÚóóÝ  Ý×  ׀РT¤ ÐYouth€Programs€is€not,€contrary€to€the€Stateððs€assertion,€a€revenue„generating€organization€in€aÐ =  Ðcommercial€sense.€€Rather,€it€exists€to€raise€funds€for€recognized€charities€and,€since€1970,€has€raisedÐ & v Ðfunds€exclusively€for€St.€Jude.€€This€unquestionably€confers€a€benefit€on€the€public€and€improvesÐ  _ Ðconditions€in€the€community.Ð ø H ÐÌà  àWe€next€consider€the€Stateððs€argument€that€Youth€Programs€was€not€created€to€provideÐ Ê   Ðstaging€or€parking€areas€for€golf€tournaments,€and€that,€assuming€Youth€Programs€qualifies€as€aÐ ³  Ðcharitable€institution,€€the€golf€tournament€is€fundamentally€commercial€in€nature.€€Although€weÐ œì  Ðagree€that€Youth€Programsðð€stated€purpose€is€not€to€provide€staging€areas€or€parking€lots,€neither€isÐ …Õ  Ðits€purpose€to€provide€health€care,€conduct€scientific€inquiry,€educate€the€public,€or€to€engage€inÐ n¾  Ðreligious€activity.€€Rather,€it€is€a€charitable€institution€organized€to€raise€funds€for€other€charities,Ð W§  Ðand€it€has€been€granted€federal€tax„exempt€status€as€a€charitable€institution€to€engage€in€this€purpose.€Ð @ ÐIn€light€of€this€purpose,€we€cannot€imagine€an€activity€in€which€Youth€Programs€might€engage€thatÐ )y Ðwould€not€be€a€considered€a€commercial€endeavor€were€it€not€conducted€by€a€charitable€institutionÐ b Ðand€the€proceeds€not€given€to€a€charity.€The€simplest€bake€sale€involves€the€commercial€activity€ofÐ ûK Ðselling€baked€goods€and,€albeit€to€a€negligible€extent,€competes€with€commercial,€tax„paying€entitiesÐ ä4 Ðconducting€the€same€enterprise.€€The€fact€that€a€charitable€institutionððs€activities€may€be€similar€toÐ Í Ðor€in€competition€with€tax„paying€businesses€does€not€by€itself€render€the€property€on€which€itÐ ¶ Ðconducts€those€activities€taxable.€€òòBook€Agentsóó,€òòof€the€Methodist€Episcopal€Church€v.€State€Bd.€ofÐ Ÿï ÐEqualizationóó,€513€S.W.2d€514,€523€(Tenn.€1974).€€For„profit€entities€may€exist€to€provide€the€sameÐ ˆØ Ðservices€as€non„profit,€charitable€entities.€€Ô#†XΧXXXæòS¹#ÔÔ‡XæòXXXΧÔòòId.óóÔ#†XΧXXXæòƒÖ#ÔÔ‡XæòXXXΧÔ€€We€recognize,€moreover,€that€the€tournament€in€thisÐ ° Ðcase€includes€a€substantial€purse€or€profit€to€the€tournament€winner.€€However,€the€fact€that€a€profitÐ ™é Ðis€generated€by€an€organizationððs€activities€is€not€determinative.€€Section€67„5„212€disallows€theÐ ‚Ò Ðexemption€only€where€stockholders,€officers,€members,€or€other€employees€receive€or€are€entitledÐ k» Ðto€receive€profits€other€than€reasonable€compensation€for€services.€€Tenn.€Code.€Ann.€ðð€67„2„Ð T¤ Ð212(a)(3)(A);€òòBook€Agentsóó,€513€S.W.2d€at€523.€€Ð =  ÐÌà  àThe€primary€inquiry€in€the€cases€discussed€above€was€whether€the€non„profit,€educational,Ð  _ Ðcharitable,€or€religious€institution€or€hospital€used€the€property€exclusively€and€purely€for€theÐ ø H Ðpurpose(s)€for€which€the€institution€was€created€or€exists,€or€for€a€purpose€directly€incidental€to€theÐ á 1  Ðinstitutional€purpose(s).€€The€same€inquiry€is€determinative€here.€€If€the€organization€is€charitableÐ Ê   Ðfor€the€purposes€of€section€67„5„212,€and€if€it€uses€its€property€specifically€and€exclusively€for€theÐ ³  Ðpurposes€for€which€is€was€created€or€exists,€or€for€a€purpose€directly€incidental€to€that€purpose,€then,Ð œì  Ðassuming€compliance€with€the€remainder€of€the€section,€that€property€is€tax„exempt.€€YouthÐ …Õ  ÐPrograms€undisputedly€uses€its€property€to€raise€funds€for€St.€Jude€and,€therefore,€uses€it€for€itsÐ n¾  Ðinstitutional€purpose.Ð W§  ÐÌà  àWe€next€consider€the€Stateððs€contention€that€Youth€Programsðð€use€of€the€property€is€a€òòdeÐ )y Ðminimus€óóuse€which€cannot€justify€taking€this€real€property€off€the€tax€rolls.€€Although€YouthÐ b ÐPrograms€uses€the€property€for€only€one€month€a€year,€there€is€nothing€in€the€statutes€or€case€lawÐ ûK Ðwhich€would€mandate€continuous€use.€€On€the€contrary,€under€òòMid„State€Baptist€Hospital,€Inc.€v.Ð ä4 ÐCity€of€Nashvilleóó,€366€S.W.2d€769€(Tenn.€1963),€where€the€supreme€court€held€that€exempt€propertyÐ Í Ðunder€construction€and€therefore€unused€would€not€be€subject€to€taxation€until€converted€by€theÐ ¶ Ðexempt€hospital€to€a€commercial€use,€continuous€use€is€not€€required€for€purposes€of€the€exemption.€Ð Ÿï ÐApplying€the€reasoning€of€the€Tennessee€Supreme€Court€cases€discussed€above,€we€hold€theÐ ˆØ Ðproperty€owned€and€used€by€Youth€Programs€in€this€case€is€exempt€from€taxation€under€section€67„Ð qÁ Ð5„212(a).Ð Zª ÐÌà  àWe€finally€turn€to€the€status€of€the€portion€of€Youth€Programsðð€property€that€is€unused€andÐ ,| Ðunusable.€Parcel€9/Lot€C€consists€of€24.17€acres€property.€€Seventeen€acres€actually€are€used€forÐ e Ðparking;€the€remainder€is€wooded,€includes€a€drainage€ditch,€and€cannot€be€used€for€parking€orÐ þN Ðstaging€purposes€in€its€present€condition.€€The€State€asserts€that,€if€the€property€actively€used€byÐ ç 7 ÐYouth€Programs€is€exempt€from€taxation,€the€wooded€portion€of€the€property€which€is€not€used€isÐ Ð!   Ðsubject€to€taxation.€€The€Stateððs€argument,€as€we€understand€it,€is€that€the€exemption€requires€actualÐ ¹" ! Ðactive€òòuseóó,€and€the€seven€wooded€acres€are€simply€not€used€and€therefore€not€exempt.€€Ð ¢#ò" ÐÌà  àYouth€Programs,€on€the€other€hand,€asserts€that,€although€the€wooded€area€is€not€used€forÐ t%Ä $ Ðparking,€it€is€necessary€because€it€includes€the€access€road€from€the€public€road€to€the€parking€area.€Ð ]&­!% ÐYouth€Programs€further€asserts€the€drainage€ditch€is€necessary€to€allow€water€to€flow€through€theÐ F'–"& Ðproperty.€€The€trial€court€held€this€portion€was€ð ðconstructively€usedðð€and€exempt€from€taxation.€€Ð /(#' ÐÌà  àClearly,€if€this€portion€of€Youth€Programsðð€property€were€leased€to€a€commercial€enterpriseÐ *Q%) Ðor€used€for€a€purpose€not€related€to€the€charitable€purposes€of€Youth€Programs,€it€would€be€subjectÐ ê*:&* Ðto€taxation.€€In€this€case,€however,€the€wooded€area€is€substantially€unusable€in€its€present€condition,Ð Ó+#'+ Ðand€the€drainage€ditch€allows€water€to€flow€through€the€property.€€We€agree€with€the€trial€court€thatÐ ° Ðit€is€exempt€from€taxation€under€section€67„5„212(a).Ð ™é ÐÌÓ  Óò òòòConclusionóóó óÐ k» ÐÓéÓÌà  àWe€are€not€insensitive€to€the€Stateððs€position€in€this€case.€€The€Stateððs€argument,€in€essence,Ð < Œ Ðis€predicated€on€the€larger€questions€of€limitations€and€potential€abuse€of€the€exemption€statutes.Ð % u ÐWhile€we€do€not€believe€such€abuse€exists€in€this€case,€we€observe€that€the€statute€is,€as€previouslyÐ  ^ Ðnoted€by€the€courts,€somewhat€ambiguous.€€òòSee€Book€Agents€of€the€Methodist€Episcopal€Church€v.Ð ÷ G ÐState€Bd.€of€Equalizationóó,€513€S.W.2d€514,€527(Tenn.€1974)(Leech,€S.J.,€concurring).€€Thus,€as€weÐ à 0  Ðhave€previously€emphasized,€each€case€must€be€decided€on€its€facts€and€upon€the€application€of€theÐ É   Ðlaw€to€those€specific€facts.€€òòSee,€e.g.,€Middle€Tennessee€Med.€Ctr.€v.€Assessment€Appeals€Commððnóó,Ð ²  ÐNo.€01A01„9307„CH„00324,€1994€WL€32584,€at€*€5€(Tenn.€Ct.€App.€Feb.€4,€1994)(òòperm.€app.Ð ›ë  Ðdenied€óóMay€9,€1994).€€The€State€vehemently€asserts€that€the€statutes€were€not€intended€to€encompassÐ „Ô  Ðcharities€which€exist€to€raise€funds€for€other€charities.€€We€note,€as€Youth€Programs€submits,€thatÐ m½  Ðthis€argument€has€broad€implications€for€a€number€of€charitable€institutions€such€as,€for€example,Ð V¦  Ðthe€United€Way.€€In€light€of€the€ambiguity€of€the€statutes€and€the€historically€liberal€construction€inÐ ? Ðfavor€of€charitable€institutions,€we€are€loathe€to€disturb€that€construction€here.€€òòSee€id.óó€(quotingÐ (x ÐòòGallagher€v.€Butleróó,€378€S.W.2d€161€(Tenn.€1963)(quoting€òòNew€England€Mutual€Life€Ins.€Co.€v.Ð a ÐReeceóó,€83€S.W.2d€238€(Tenn.€1935))).€€Without€so€suggesting,€if€such€institutions€should€not€beÐ úJ Ðrecognized€as€charitable,€it€is€within€the€province€of€the€legislature€to€disturb€the€construction€of€theÐ ã3 Ðstatutes€historically€afforded€in€Tennessee.Ð Ì ÐÌà  àIn€light€of€the€foregoing,€Youth€Programs€is€exempt€from€taxation€under€Tennessee€CodeÐ žî ÐAnnotated€67„5„212(a)€where€Youth€Programs€uses€the€property€exclusively€for€the€charitableÐ ‡× Ðpurposes€for€which€Youth€Programs€was€created.€€We€accordingly€affirm€the€trial€court€on€this€issue.€Ð pÀ ÐWe€likewise€affirm€the€trial€courtððs€determination€that€the€wooded€portion€of€the€property€is€exemptÐ Y© Ðfrom€taxation.€€Costs€of€this€appeal€are€taxed€to€the€Appellants,€the€Tennessee€State€Board€ofÐ B’ ÐEqualization€and€Shelby€County€Assessor€of€Property.€Ô#†XΧXXXæòÎÖ#ÔÐ +{ ÐÌÌÌà  àà ` àà ¸ àà  àà h àà À àà  à___________________________________€Ð Ï!  Ðà  àà ` àà ¸ àà  àà h àà À àà  àDAVID€R.€FARMER,€JUDGE