Indiana Supreme Court rules against fraternities in property tax case

The Indiana Supreme court rejected a claim Thursday that three IU fraternities should be repaid $110,286 in property taxes by Monroe County. In the four to one majority ruling, the court ruled unconstitutional a "special law" passed by the Indiana General Assembly that would have allowed Pi Kappa Phi, Alpha Tau Omega and Sigma Chi to retroactively file for property tax exemptions after they failed to do so in 2000 and 2001. \nKey to the court's ruling was that the law applied so specifically to these fraternities and not to the general population as a whole. \n"The Indiana Constitution prohibits special laws which grant privileges to a few people that are not available to others," Chief Justice Randall Shepard wrote in the majority decision. "The statutory amendment in this case exempted three taxpayers, after the fact, from tax deadlines applicable to everyone else. The trial court was right to uphold the Constitution."\nThe ruling states the law the case is referring to is retroactive provision applying only to a fraternity for students attending IU, that is owned by a nonprofit corporation and is not eligible for the property tax exemption. According to court documents after the law was passed, representatives from Pi Kappa Phi requested Monroe County to refund the taxes paid on the property that the new law exempted them from. \nHowever, instead of granting the fraternity's request, the county auditor appealed it and requested a declaratory judgment from the courts, court document stated. In December of 2004 a Monroe County circuit court ruled in favor of the auditor. \nThe Indiana Supreme Court then upheld the lower court's ruling Thursday. According to the ruling, while saying that some "special laws" that affect certain people are allowable, the court ruled this case was different because no probable justification for the law was reached. \n"The taxpayers provide no meaningful explanation as to why the problems they face are any different than those faced by w fraternities and sororities throughout the state," Shepard wrote. "There is nothing supporting the contention that 'education cost(s are) a problem unique to Indiana University students living in Monroe County."