Hospital Purchase Service of Michigan v. City of Hastings

In Hospital Purchase Service of Michigan v. City of Hastings, 11 Mich App 500, 508; 161 NW2d 759 (1968), the plaintiff leased a portion of the charitable medical facility it owned and operated to the Secretary of State for use as a driver's license bureau. Id. at 502, 508. The Court held that the portion of the facility leased to the state and from which the plaintiff derived an income was not exempt from taxation under CLS 1961, 211.7 (see now MCL 211.7n; MSA 7.7(4k), MCL 211.7o; MSA 7.7(4l)). Id. at 508-509. In reaching this conclusion, the Court relied on the language of the exemption, which provided in part that exemption of property shall be granted to "such real estate as shall be owned and occupied by . . . . charitable . . . institutions . . . incorporated under the laws of this state with the buildings and other property thereon while occupied by them solely for the purposes for which they were incorporated." Id. at 508.