Mariner's Museum v. City of Newport News

This is an appeal from a judgment in an action for relief from alleged erroneous assessment of local taxes. The central issue is whether a charitable corporation, eligible for an exemption from real estate taxes, forfeits that exemption when it leases realty to another charitable corporation and the lease is “a source of revenue or profit” to the lessor under Code § 58.1-3603(A).

In July 1994, appellants The Mariner’s Museum and Riverside Healthcare Association, Inc., filed against appellee City of Newport News an application, pursuant to Code § 58.1-3984, for relief from erroneous tax…