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Show " STATEHOUSE REPORT - SIgh Court Narrows Exemptions For Taxing Charitable Property R.v C. Shnrp Property must ho used I'm- charitable or other -tax-exempt purposes or else it must be taxed regardless of whether it is owned by churches the State Supreme Su-preme Coure ruled unanimously unani-mously August 10. This far - reaehinc decision decis-ion reversed a district court ruliiiK exempting Friendship Friend-ship Manor, high rise apartment ap-artment in eastern Salt Lake City, from taxation. "The state does not have the obligation to provide living li-ving accomodations to persons per-sons well able and willing to pay for their needs," wrote Second District Judje Ronald O. Hyde of Ogden who sat for Chief Justice E. K. CaUistcr Jr. Calister had disqualified himself. Four other Supreme Supre-me Court justices concurred an Hyde's opinion. . . Owned by Churches Friendship Manor Corp., the opinion says, is owned by fuiir organizations: The First Unitarian Church, First Congregational Church Chur-ch and Temple B'nai Israel, Salt Lake City, and the Uni-ed Uni-ed Church of Christ, a Utah Association. The 22S.unit luxury apartment ap-artment was built with ?;.31 million borrowed under un-der the National Housing Act at a total interest rati cf 534 per cent over 40 years. Hyde also observed that "Where the senior citizen i is paying for all the servi- cos he receives and the rental of the partmunl U not deterniiined by neel, but is determined by what is required to retire the principal prin-cipal and interest of the mortgage, together with all upkeep and operation expenses, ex-penses, no charitable purpose purp-ose is involved." Peek 2nd Win Members of the State Ta.x Commission who had appenled from the district 'court decision are hoping that the same court will rule as favorably for it on the Kennecott Copper Corp. tax t'ase pendinR. Following a State Supreme Supre-me Court decision several years ago Kennecott allocated allo-cated some of its profits to subsidiary interstate oper-atons, oper-atons, reducing considerably considerab-ly its corporation franchise tax payments to the state. Gov. Calvin L. Rampton tried to recoup some of this money by a graduated mine-occupation mine-occupation tax increase which would have affected only Kennecott, but this plan was defeated in the Legislature. J. P. O'Kecfe, general manager of Kennecott's Utah Copper Divisuon, contended con-tended that the tax would havty imposed an unfair burden bur-den and would shorten the life of the big copper mine. $2.4 Million Due The Tax Commission levied le-vied a deficieny assessment against Kennecott for $2.4 miliion for taxes allegedly due for the years 1!)G7-GS. Under stale law if one formula for determining a company's corporation franchise fran-chise (income) tax is not equitable, the Tax Commission Commis-sion can require another method. This case will be argued soon before the Stale Supreme Sup-reme Court. Speedy action by a three-judge three-judge federal court to decide de-cide validity of the reapportionment reappor-tionment schedule enacted by the special session of the. Legislature was predicted Aug. 13 by Atty. Gen. Vernon Ver-non B. Romney. Court Authoriy "The federal court," he said, "has authority to rs-district rs-district the state for election elec-tion of legislators. Whether it decides to exercise this power or only to tell the Legislature what it must do" remains to be seen." Romney said his office has not recently seen other federal courts approve disparities dis-parities as large as those in the Utah bill. He promised, promis-ed, however, to defend the Legislature's action to the best of his ability before the federal court. The attorney general twit' ted Gov. ' Calvin L. Rampton Rampt-on for having given his own opinion that the state can be held responsible for windshields broken by gravel gra-vel thrown by speeding cars on .sections of highway newly tarred and chipped. "Rampton," Romney charged, char-ged, "was indiscreet like 'J-'rcskicnt Nixn wheii Iil: commented on t lie Manson case then in court and had to 'eat' his words." Pos.'.ibly the stale has a valid defense against suits which may be filed to re- cover damages for many windshields recently broken brok-en by flying gravel in Tooele Too-ele County, Romney said. Senate President, Haven J. Hallow, R-Layton, the day before had said he believed be-lieved that Rampton would run for reelection next year. Many Candidates Ro'lh Barlow and Romney admittedly are considering running for the Republican nomination for governor. "If Rampton does run for a third term," Romney pn.dirled, "lie will have a pretty rough ride in the final fi-nal election because Claims by tradition nave opposed a third term." The attorney general said Utah's per capita income has dropped from "-1st o 39th among the states ar.d that manufacturing lias dropped here since the Clyde administration. |