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3ABN sued
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Must Read:
Mom in Pain #1

Mene, Mene,
Tekel, Parsin

The Actual Lawsuit
IRS Criminal Investigation

3ABN's Property Tax Case Appeal

Opening Brief of Appellant 3ABN

Part One

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With still no hint from Plaintiff Danny Shelton that he intends to back off of the lawsuit over Save3ABN.com, we venture to post this document pertaining to 3ABN's property tax appeal, a document that just may have a bearing on the lawsuit, given the nature of some of its claims.

Typographical errors may actually be copied from the original.

We post this Appellant Brief in multiple parts, with certain portions of interest highlighted for emphasis.

While the lawsuit claims that 3ABN is a non-denominational ministry preaching a nondenominational message, the first part of 3ABN's Appellant Brief below claims that "all [3ABN] programming ... advances the ... doctrines and beliefs of the Seventh-day Adventist Church."

Also claimed is that "Three Angels is operated by an independent board," and that "none of the donor funds that support Three Angels ministries goes to the inurement of any private person." Attorney Mike Riva's signature appears at the end of this brief. He is the same attorney that prepared the documents whereby Danny and Linda Shelton sold a house for $135,000 that they had just bought from 3ABN for $6,139 the week before.

Lastly, this Appellant Brief raises the question of whether $20 could be considered enough of a sum to be considered private inurement. If $20 might be in doubt, perhaps $128,861 ($135,000 − $6,139) would not be.

Part One of 3ABN's Appellant Brief

 

IN THE CIRCUIT COURT OF THE SECOND JUDICIAL CIRCUIT
FRANKLIN COUNTY, ILLINOIS

THREE ANGELS BROADCASTING
NETWORK, INC.,


Plaintiff,
and


THE DEPARTMENT OF REVENUE
OF THE STATE OF ILLINOIS,


Defendant,
and


THOMPSONVILLE COMMUNITY HIGH
SCHOOL DISTRICT NO. 112, and
THOMPSONVILLE SCHOOL DIST. NO. 62


Intervenors,
and


FRANKLIN COUNTY BOARD OF
REVIEW,

Intervenor.

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No. 04-MR-15

OPENING BRIF OF APPELLANT THREE ANGELS BROADCASTING
NETWORK, INC.

 

[page ii]

TABLE OF CONTENTS


HeadingPage Number
 
INTRODUCTION1
 
QUESTIONS PRESENTED2
 
STATEMENT OF THE CASE3
 
  1. Undisputed Factual Background
4
 
 
  1. Three Angels Structure and Organization.
4
 
 
  1. The Three Angels' Properties and Their Religious Uses.
5
 
 
  1. Three Angels Promotion of Seventh-day Adventist Gospel Beliefs.
6
 
 
  1. Three Angels Cooperation with the Seventh-day Adventist Church.
7
 
 
  1. Three Angels Promotion of Free or Reduced Fee Programming and Airtime.
8
 
 
  1. The Religious Content of Three Angels Programming.
9
 
 
  1. Pricing and Revenue of Religious Material.
9
 
 
  1. Salaries and Issues of Personal Inurement
10
 
  1. Disputed Factual Findings
11
 
 
  1. Issue of Inurernent and Board Makeup
13
 
 
  1. Issue of Sheltons' Salary and Alleged Linda Shelton Royalty
16
 
 
  1. Donated Items and Other Giveaways
18
 
 
  1. Officers Directly Involved in Religious Ministry and Teaching
21
 
[page iii]
 
  1. Excluded Factual Evidence
24
 
 
  1. Elder Ted Wilson and Dr. Denis Fortin
25
 
 
  1. Evidence as to Tri-State Christian TV Relating to Equal Protection Claims
28
 
ARGUMENT30
 
  1. Contrary to the hearing judge's legal conclusions, the property used by Three Angels to undertake its religious broadcasting ministry is used for exclusively religious purposes and is exempt from property taxes under 35 ILCS 200/15-40 and 35 ILCS 200/15-65
30
 
 
  1. The lower court's rejection of Three Angels' view of its own religious purposes and the court's use of a rigid and narrow definition of religious purpose is contrary to Illinois law and constitutes reversible error
31
 
 
  1. The lower court erred in concluding that Three Angels did not use its property primarily for religious purpose, as revenues from its properties do not inure to any private person, it supports a wide range of missionary activities, and it provides its broadcast services at or below cost
36
 
CONCLUSION47
 
REQUESTED RELIEF48

[page 1]

INTRODUCTION

This case is about whether the main broadcast, programming and administrative facilities of Three Angels Broadcasting Network, Inc., should be exempt from Illinois property taxes. Three Angels is a religious broadcast ministry based in southern Illinois that beams its Christian, Bible-based programming to literally every populated continent of the globe using satellite technology. Three Angels creates and produces much of the programming it airs, but also airs the programming of other Christian ministries, some at no cost, and some at a nominal fee. The vast majority of its operating revenue comes from charitable donations.

All the programming aired by Three Angels is supportive of and advances the Bible-based doctrines and beliefs of the Seventh-day Adventist Church. The programming consists of Bible-based preaching, teaching, and worship music, as well as segments on Christian lifestyle, including the importance of treating the body as the temple of the Holy Spirit by promoting fitness, health and a Biblically-based vegetarian diet.

Three Angels is operated by an independent board consisting of eleven members of the Adventist church, a number of whom are present or former church leaders. None of the donor funds that support Three Angels ministries goes to the inurement of any private person. Three Angels has operated in this fashion for about twenty years, and during this time has been recognized as a not-for-profit, tax-exempt organization by both federal and state authorities. It holds a 501(c)(3) charitable and religious entity exemption from the IRS, and is treated as a not-for-profit by the State of Illinois for sales tax purposes.

[page 2]

For its first fifteen years or so, Three Angels was also treated as exempt for property tax purposes. It paid no property taxes on its operations and administrative properties until it was assessed, with no real explanation for the change, in the year 2000, and then again in 2001. It challenged these assessments to the Board of Review based on Three Angels' religious character and religious use of its properties, but to no avail. Three Angels then challenged these findings to the Department of Revenue, and an administrative hearing was held between September 23 and 25, 2002. On January 28, 2004, Administrative Law Judge Barbara S. Rowe held that applicant is a "non-religious and commercial enterprise, and that, with the exception of two small pastoral offices, the buildings at issue are "used with a view to profit."

Three Angels takes strong exception to Judge Rowe's conclusions, both to her findings of fact and conclusions of law, regarding the religious nature of Three Angels, and its religious use of the subject properties. Three Angels filed a motion for reconsideration, and when this was substantially denied, it filed this timely appeal for a review of these issues.

QUESTIONS PRESENTED

While there are a number of factual questions presented below, the primary legal questions presented by this appeal are:

1.  To qualify for property tax exemption, must a religious organization use its property only for worship services and Sunday school lessons, or may it also engage in other kinds of religious communication and instruction, including the creation, distribution and broadcasting of religious services, instruction and programs related to a Biblical lifestyle?

[page 3]

2.  Does the accrual of 1 to 2 months operating expenses in the form of net revenue by a religious organization disqualify that organization from being a not-for-profit entity?

3.  Does the receipt of a de-minimis amount of a royalty, i.e., $20, from an unrelated third party, based on the licensing of personal property, by an officer of a religious organization, equal the same thing as a disqualifying personal inurement from the religious organization?

4.  Should an applicant for religious property tax exemption be allowed to present witnesses and evidence regarding the religious nature of its beliefs and activities?


STATEMENT OF THE CASE

The factual statement of this case comes in three parts. The first section will outline those facts as to which there is no substantive dispute or disagreement. These will include findings made by the trial judge, as well as those facts in the record that are otherwise undisputed. The second section will consist of findings of fact, and applications of fact to law, made by the trial judge that Three Angels believes are not supported and/or are contradicted by the record. Three Angels is asking this Court to reverse these particular findings and conclusions.

The final section consists of facts and testimony that the trial judge entirely excluded from the hearing, but that Three Angels preserved through offers of proof, and now asks this court to consider as the basis for a reversal. The legal argument section will then reference each of these sections. Certain legal arguments will provide a basis for reversal based on the

[page 4]

undisputed facts, while other arguments will be based on this Court overruling the trial judge on certain legal and factual issues, or to allow in evidence or witnesses excluded below.

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