Wednesday, January 02, 2008

Churches Increasingly Hit With Property Tax For Unrelated Property

Today's Wall Street Journal reports that local governments are increasingly levying property taxes on churches, as religious organizations increasingly acquire property which they rent out or use for non-religious purposes. Examples range from a visitors center and gift shop built by a Newport, Rhode Island synagogue, to shopping center space rented out to stores and restaurants by a Rockford, Illinois church that owns the mall and uses part of it for worship services. Churches say that proceeds from properties are funneled back for religious uses. Generally, though, laws exempt property only if the property itself is used for religious or charitable purposes. Texas Tech law professor James Vaughn says: "When you have a taxing authority trying to decide what's your ministry and what's not, I see a problem here."

1 comments:

KipEsquire said...

"When you have a taxing authority trying to decide what's your ministry and what's not, I see a problem here."

Um, why? There is no First Amendment right not to have your church taxed (Bob Jones University v. IRS). It's a mere policy overlay wrapped up in the general heuristic that non-profit activities should be tax-exempt.

The government only comes close to the line when the churches come close to the line first.

Don't turn your pews into pizzarias, and don't confuse your pulpits with your politics, and you'll have little difficulty with the IRS.