Vanderbilt University v. Tennessee State Board of Equalization, et al

Vanderbilt University applied for a 100% property tax exemption for eleven of its fraternity houses pursuant to the educational exemption, Tenn. Code Ann. § 67-5-212(a)(1), or the dormitory exemption, Tenn. Code Ann. § 67-5-213(a). The State Board of Equalization (“SBOE”) denied Vanderbilt’s application, and Vanderbilt sought administrative review. An administrative law judge and the Assessment Appeals Commission both reached the same conclusion as the SBOE. Vanderbilt then sought judicial review, and the trial court determined that the fraternity houses were entitled to the 100% exemption because they satisfied the requirements for the educational exemption. The State appealed, and we reverse the trial court’s decision. The fraternity houses are not used “purely and exclusively” for educational purposes, as that provision has been interpreted and applied by the courts. We also decline to find the fraternity houses qualify for the dormitory exemption because they are not used primarily for dormitory purposes, as the statute requires.