Real Estate Not Exceeding One Half Acre In Extent, And The Buildings Thereon, And Used Exclusively By Any College Or University Society As A Literary Hall, Or As A Dormitory Or Club Room If Not Leased Or Otherwise Used With A View To Profit

21.1. All real estate not exceeding one-half acre in extent and the buildings thereon, used exclusively by any college or university society as a literary hall, or as a dormitory or club room and not leased or otherwise used with a view to profit is presumed to be exempt from ad valorem property taxation. If the tract exceeds one-half acre in extent, the owner thereof must demonstrate the use is exempt.

21.2. In order for the property to be exempt, the college or university society must be using the property in the required manner; that is to say, that any revenues generated through the use of the property shall not exceed the cost of maintaining the property and the reasonable operating costs of the society, if the revenues generated through the use of the property are specifically designated for such purposes.

21.3. In order for the property to be exempt, the college or university with which the society is associated must be accredited by the accrediting organization recognized by the State.

21.4. The college or university society may not be organized on a for-profit basis.

21.5. If the college or university society is itself leasing the property in question from another, the lessor may not realize a profit from the lease. If the property is being used for the above stated exempt purpose by the lessee, the leasehold will be exempt from ad valorem property taxation. If the revenue received by the lessor exceeds the actual cost of maintaining the property, exclusive of any interest on any mortgages, notes of indebtedness or similar financial item entered into for the purpose of purchasing the property, the fee interest will be subject to ad valorem property taxation.

21.6. If the college or university society leases or subleases rooms to others, it may not realize a profit from the leases; the question of profit is to be determined over the entire period of the lease.