Whyy, Inc. v. Borough of Glassboro
Headline: State may not deny property-tax exemption to a nonprofit broadcaster just because it is incorporated elsewhere; Court reversed New Jersey and requires equal treatment for out-of-state nonprofit broadcasters.
Holding: The Court held that New Jersey cannot refuse a property-tax exemption to a nonprofit television broadcaster solely because it was incorporated in another State, and reversed the state court’s denial as unequal treatment.
- Bars states from denying tax exemptions solely for out-of-state nonprofit broadcasters.
- Allows out-of-state nonprofit TV stations to seek the same exemptions as in-state ones.
- Requires states to evaluate foreign and domestic nonprofits equally for tax relief.
Summary
Background
A Pennsylvania nonprofit corporation operates a noncommercial television station and built transmission facilities on a 50-acre plot in Glassboro, New Jersey. The station reaches millions in the Delaware Valley and serves New Jersey viewers. The corporation sought an exemption from New Jersey real and personal property taxes for its land and facilities, but state authorities denied the claim because the corporation was incorporated outside New Jersey.
Reasoning
The Court addressed whether New Jersey could withhold a tax exemption solely because the nonprofit was incorporated in another State. Relying on prior decisions protecting adopted foreign corporations from unequal tax treatment, the Court concluded that denying the exemption only for foreign incorporation was not justified. The Court reversed the New Jersey Supreme Court’s decision and ordered further proceedings consistent with equal treatment principles.
Real world impact
The decision means out-of-state nonprofit broadcasters operating in New Jersey must be given an opportunity equivalent to in-state nonprofits to prove they qualify for tax exemptions. The opinion noted administrative convenience is not a sufficient reason to deny the opportunity to be evaluated. The opinion also records that New Jersey later amended its law to create a specific exemption for educational television property effective for taxes payable in 1968 and after.
Dissents or concurrances
Mr. Justice Black dissented from the reversal and would have affirmed the New Jersey decision denying the exemption.
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