Pace Organization of Rhode Island v. Sarah Frew, in her capacity as Tax Assessor for the City of East Providence

Summary

The Rhode Island Supreme Court affirmed judgment for the East Providence tax assessor in a dispute over PACE Organization of Rhode Island’s claimed property-tax exemption under G.L. 1956 § 44-3-3(a)(12). The Court held that the statute was ambiguous as applied to PACE and resolved the ambiguity in favor of taxation, concluding that PACE’s property was not exempt.

Holdings

1. Section 44-3-3(a)(12) is ambiguous as applied in this case because the term "society" can reasonably be read either broadly to include many entities or narrowly as referring to a library-related organization.
2. Any doubt or ambiguity in a statute granting a tax exemption must be resolved in favor of taxation and the taxing authority.
3. PACE was not entitled to the claimed property-tax exemption because the statute's ambiguity had to be resolved in favor of taxation.

Questions Presented

1. Whether G.L. 1956 § 44-3-3(a)(12) is ambiguous regarding which entities may claim the property-tax exemption and the permissible uses of exempt property.
2. Whether the statute permits PACE, an organization providing services to elderly persons, to claim a property-tax exemption for property used for the aid or support of the aged poor.
3. Whether an ambiguity in a statute granting a tax exemption must be resolved in favor of taxation.

Disposition

affirmed