Showing posts with label Exempt organizations. Show all posts
Showing posts with label Exempt organizations. Show all posts

Friday, November 17, 2023

Church Sues Challenging Fee for Water Connection

Suit was filed this week in a Texas state trial court by a church challenging a Houston-area utility district's insistence that the church pay a capital recovery fee of $83,780 rather than the actual cost of $24,900 to connect its new office building and auditorium to the district's water system. The district insists that the added fee "prevents taxpayers from bearing the burden of paying taxes on the bonds issued to construct water, sewer, and drainage facilities that also serve the Church." The complaint (full text) in Grace Community Church- The Woodlands, Inc. v. Southern Montgomery County Municipal Utility District, (TX Dist. Ct., filed 11/15/2023), alleges that the fee in excess of the actual cost of the connection amounts to an unlawful tax on a tax-exempt organization.  It also contends that the fee violates the Texas Religious Freedom Restoration Act and the First Amendment's free exercise clause. First Liberty issued a press release announcing the filing of the lawsuit.

Friday, October 08, 2021

Canadian Court Says Tai Chi Institute Is A Religious Institution

In Fung Loy Kok Taoism Institute v. City of Montreal, (Quebec Super. Ct., Sept. 20, 2021), a Canadian trial court in Quebec held that a Taoist Tai chi Institute is entitled to an exemption from property, municipal and school taxes. The court's 50-page opinion includes a lengthy discussion of what constitutes a "religion". Summarizing its ultimate conclusion on the tax issues, the court says in part:

These ... requests ... raise two major questions: what is a religion? What is a religious institution?....

... [S]hould Taoist Tai chi , as practiced, taught and disseminated in Canada by the Chinese monk Moy Lin-Shin ("master Moy"), be regarded as a religion in its own right rather than for proper gymnastics to promote internal balance and health?

... The Fung Loy Kok Institute of Taoism ... which offers classes or sessions of tai chi for a monetary contribution from the participants, does it qualify as a religious institution within the meaning of the law allowing it to benefit in Quebec from an exemption from property taxes? ...

At the end of its analysis, the Tribunal comes to the conclusion that both the first and the second of these two questions must be answered in the affirmative.

Windsor Star reports on the decision.

Saturday, February 27, 2021

California Church Not Exempt From Property Tax Assessed On Basis of Square Footage

In Valley Baptist Church v. City of San Rafael, (CA App., Feb. 26, 2021), a California state appellate court held that the "property taxation" exemption for property used exclusively for religious worship (California Constitution Art. XII, §3(f)) applies only to ad valorem taxes. Therefore plaintiff church was not exempt from the San Rafael's Paramedic Tax which is assessed on the basis of property square footage, not property value.

Saturday, November 16, 2013

Panelists Lament Loss of Experience At IRS Exempt Organizations Unit

Yesterday's BNA Daily Report for Executives [subscription required] reports on a Nov. 15 conference on tax exempt organizations sponsored by the American Law Institute and American Bar Association at which speakers lamented the current situation in the Internal Revenue Service's Exempt Organizations unit. Here are some excerpts from the BNA report:
Most of the senior IRS officials who worked in the unit have either retired or been pushed out as a result of the May Tea Party scandal, said Marc Owens, a partner with Caplin & Drysdale.... “Everyone from the commissioner down to the director of rulings and agreements in the exempt organizations function were replaced by people with essentially no tax administration experience,” he said. “No experience interpreting the Internal Revenue Code, no experience dealing with taxpayers that apply the code, no experience in doing what the exempt organizations function has done and is in charge of doing.”... One of the impacts of less-experienced employees in recent years has been a dwindling number of technical advice memorandums, the panelists said. TAMs move audit cases to the IRS's national office....