For the past century, New York City real estate owned by a religious corporation "actually dedicated and used ... exclusively as a place of public worship" is exempt from payment of certain water charges. (A comparable exemption applies to sewer charges.)
in 1991, the Brooklyn Assembly Halls of Jehovah's Witnesses, Inc., applied with the Department of Environmental Protection of City of New York (DEP) for an exemption from water and sewer charges for a major (100,000 square foot) structure located in Brooklyn, New York. While the building had assembly halls in the basement and on the first floor, the building also included two residential apartments used by the corporation's employees -- a caretaker and manager.
Although the application was denied, the religious corporation was advised that it might qualify for a "partial exemption" covering "the basement, first and second floor area," and only "one dwelling allowed for a caretaker."
Over a decade later, the entity refiled an application with the DEP, which again denied the request (since the religious corporation still maintained the two dwellings, and had added "guest rooms" to the building's fourth floor). On administrative appeal, the New York City Water Board affirmed the denial and suggested (as the DEP did in 1991) that the religious corporation could apply for a partial exemption.
In response to an Article 78 proceeding filed by The Jehovah's Witnesses, the Queens County Supreme Court directed the City to approve the exemption and to refund monies paid for water and sewer charges since 2002. On appeal, the Appellate Division, Second Department, reversed.
Since the Water Board's decision was "neither arbitrary nor capricious," and consistent with the legislative intent that the exemption apply "only to those potions of the real estate actually used for exempt activities," the AD2 was of the opinion that the agency's interpretation of the law should be left undisturbed.
No walking on water, here.
For a copy of the Appellate Division, please use following link: Matter of Brooklyn Assembly Halls of Jehovah's Witnesses, Inc. v. Department of Environmental Protection of City of New York