Justia Non-Profit Corporations Opinion Summaries

Respondent El Castillo Retirement Residences was a self-sustaining retirement and continuing care community, funded entirely by admission and monthly fees paid by residents who have met El Castillo’s requirements for sufficient financial resources, including a minimum net worth, and have satisfied specific health criteria. It did not accept residents who are Medicare or Medicaid-dependent, or charity-dependent or any residents who cannot afford to buy their way into the community. It neither donated any significant services or property to charitable causes, nor used its property primarily and substantially for a charitable purpose. The New Mexico Supreme Court agreed with the Court of Appeals that El Castillo did not use its property for charitable purposes and was therefore not exempt from the constitutional requirement 5 of equal taxation, the Court used the opportunity of this opinion to clarify that Section 7-36-7(B)(1)(d) must be read in harmony with controlling constitutional requirements. Accordingly, the Court held that El Castillo was not entitled to property-tax exemptions under either Section 7-36- 8 7(B)(1)(d) or Article VIII, Section 3 of the New Mexico Constitution because El Castillo did not use its property primarily for substantial public benefit furthering charitable purposes. View "El Castillo Ret. Residences v. Martinez" on Justia Law

Respondent El Castillo Retirement Residences was a self-sustaining retirement and continuing care community, funded entirely by admission and monthly fees paid by residents who have met El Castillo’s requirements for sufficient financial resources, including a minimum net worth, and have satisfied specific health criteria. It did not accept residents who are Medicare or Medicaid-dependent, or charity-dependent or any residents who cannot afford to buy their way into the community. It neither donated any significant services or property to charitable causes, nor used its property primarily and substantially for a charitable purpose. The New Mexico Supreme Court agreed with the Court of Appeals that El Castillo did not use its property for charitable purposes and was therefore not exempt from the constitutional requirement 5 of equal taxation, the Court used the opportunity of this opinion to clarify that Section 7-36-7(B)(1)(d) must be read in harmony with controlling constitutional requirements. Accordingly, the Court held that El Castillo was not entitled to property-tax exemptions under either Section 7-36- 8 7(B)(1)(d) or Article VIII, Section 3 of the New Mexico Constitution because El Castillo did not use its property primarily for substantial public benefit furthering charitable purposes. View "El Castillo Ret. Residences v. Martinez" on Justia Law