In In re Calvary Chapel Iowa, (IA Adm. Hearings Div., Sept. 17, 2024), an Iowa Administrative Law Judge held that the state's Religious Freedom Restoration Act protects churches from taxpayer suits challenging their property tax exemptions. The ALJ said in part:
The issue in this case is whether as a matter of statutory (not constitutional) law individuals can use the taxpayer-standing provision of Iowa Code section 427.1 to force a religious organization into litigation and spend the time and resources to prove its entitled to its property-tax exemption already claimed by it. Prior to the enactment of the Iowa Religious Freedom Restoration Act (“RFRA”) the answer was an unequivocal yes (with individuals having done precisely this for at least a generation); however, with the passage of RFRA, the answer now appears to be no at least under the circumstances of this case.
As discussed below, this is because this type of litigation imposes a substantial burden on the exercise of religion and because the State’s compelling interest in the appropriate administration of tax law can be met with the lesser restrictive means of having the State (with its constitutional and statutory constraints) enforce tax law. To hold otherwise would be to allow the unaccountable political opponents of a church the option to use the power of the State to target and/or retaliate against the religious organization for the organization’s activities, thereby creating a chilling effect not only on that specific religious group but also all other similarly oriented religious organizations. This is precisely the type of religious interference that RFRA was designed to prevent, and until the judiciary provides different guidance on the scope of RFRA, this case must be dismissed.
Christian Post reports on the decision.
