Form St 04-20 - Recommendation For Disposition Page 4
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12CONCLUSIONS OF LAW:
An examination of the record establishes that ABC has not demonstrated, by the
presentation of testimony or through exhibits or argument, evidence sufficient to warrant
an exemption from sales tax.
Accordingly, under the reasoning given below, the
determination by the Department denying the applicant a sales tax exemption number
should be affirmed. In support thereof, I make the following conclusions:
It is well established that there is a presumption against exemption and that
therefore, “exemptions are to be strictly construed” with any doubts concerning the
applicability of the exemption “resolved in favor of taxation.” Van’s Material Co. Inc. v.
Department of Revenue, 131 Ill. 2d 196 (1989). The applicant bears the burden of
proving “by clear and convincing” evidence that the exemption applies. Evangelical
Hospitals Corp. v. Department of Revenue, 223 Ill. App. 3d 225 (2d Dist.1991).
ABC seeks to qualify for an exemption identification number as a “corporation,
society, association, foundation or institution organized and operated exclusively for
charitable…purposes[.]” 35 ILCS 105/3-5(4); 35 ILCS 120/2-5(11). In Methodist Old
People’s Home v. Korzen, 39 Ill. 2d 149 (1968), the Illinois Supreme Court outlined a
number of factors to be considered in assessing whether an organization is actually an
institution of public charity:
(1) the benefits derived are for an indefinite number of
persons [for their general welfare or in some way reducing the burdens on government];
(2) the organization has no capital, capital stock or shareholders; (3) funds are derived
mainly from private and public charity, and the funds are held in trust for the objects and
purposes expressed in the charter; (4) the charity is dispensed to all who need and apply
for it, and does not provide gain or profit in a private sense to any person connected with
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