Contracts relating to certain exempt property; unenforceability
Sec. 34. (a) A contract is not valid or enforceable in any court of
this state if:
(1) the contract is related to tangible property which is given,
devised, or bequeathed to an educational, literary, scientific,
religious, or charitable institution;
(2) the contract provides that the institution shall pay any income
or proceeds received for the tangible property to the donor, or other
person designated by the donor, for life or for a determinate period
of time; and
(3) the contract does not provide that all property taxes that the
donor would have paid if he had retained title to the property shall be
paid by:
(i) the donor;
(ii) the person, if any, designated by the donor to receive the
income or proceeds; or
(iii) the institution.
(b) Tangible property transferred in the manner described in
subsection (a) of this section is subject to property taxation to the
same extent as tangible property which is owned by an individual.
(c) This section does not apply to real property transferred under
contracts which were entered into before March 9, 1937.
(Formerly: Acts 1975, P.L.47, SEC.1.)
Last modified: May 28, 2006