Churches in a Hostile Legislative Culture
By Robert McCurry
Beginning in 1776 America’s churches were immune
from government licensure, taxation and control; no zoning
laws, building permits or inspections; church owned land
and buildings were non-taxable.
Beginning in the 1960’s some state revenue
departments began to ‘test the waters’ and revised
policies to increase their revenue coffers by novel
schemes to tax churches; taxing anything not directly
relating to ‘worship’, such as rooms, furniture, land and
parking lots. The schemes failed, but are now being
revived in many jurisdictions.
“The power to tax is the power to destroy,”
wrote Supreme Court Chief Justice John Marshall back in
1819 for a unanimous Court in McCulloch v. Maryland. A state may tax
anything it likes (or doesn’t like). The taxing power may
be employed for regulatory purposes, and not
merely to raise revenue. As long as an exaction really
functions as a tax, it can be used to accomplish policy
ends—to induce, deter, or change conduct. And those ends
can include things the government otherwise would lack
power to command directly: the power to tax is a
freestanding power of government.
Moreover, a tax
is a tax, within government’s power to impose, regardless of
what government calls it—a “fee” or a “penalty.” Wielded
with skill (or perhaps sinister finesse), government’s power
to tax is an enormous and fearsome power and subject to few
limitations. Government
has the power to tax, and thereby to destroy.
Paul Rivera Comments
One of the dearest
things to churches is owning their own facilities. Most
churches today start out in a living room, school cafeteria,
daycare, or hotel conference room. As they grow they
usually rent a facility, with the hope of one day buying
land and building their own facility. This dream is
now under attack by hostile local governments. Cash
strapped, many county governments have begun to look for
ways to make churches pay property taxes. Let me give you
four local government attempts to tax churches.
The room by room strategy
A
church in New Hampshire was taxed by the city of Concord
on forty percent of its facilities, claiming that certain
rooms such as storage closets, upstairs bathrooms, and
other rooms were not used for religious worship and were,
therefore, subject to property tax. When the church
disagreed, it had to take its fight to court and the New
Hampshire Supreme Court ruled 4-0 in favor of the city.
At the present moment, all churches in New Hampshire are
subject to a room-by-room assessment of their property.
Refusal to comply with public policy
The
state of New Jersey revoked the property tax exemption of
a Methodist group because they refused to rent their
facilities for the purpose of performing a same sex civil
union. I see that in the near future many states and even
local governments will pass laws that will put churches at
odds with them. These laws usually require that churches
engage in or allow certain activities that are in conflict
with their doctrines and sincerely held beliefs.
Building on your facilities
A
church in Florida had to pay $40,000.00 in property taxes
on the land they purchased. At the time they purchased
it, it was raw land. They soon began to develop it and
built a new sanctuary. Some time later the county
assessed a property tax on the church stating that during
the time they were in construction the land was not being
used for religious worship and therefore it was subject to
the property tax. More than ever, it is important
that you assess the way you are using your church's
property to ensure that all of it is being used for
the church's religious purposes.
Taxing church attendance
The
city of Mission, KS adopted an ordinance that taxed a
church based on the number of trips in and out of the
church's driveway. The city was desperate for new tax
revenues. So, naturally it went after churches, which are
exempt from property tax. In essence, this ordinance
taxes a church based on its attendance. It was not until
a lawsuit that the City decided to exempt churches from
this tax.
Staying ahead of the curve
With
so much to do and so little time to do it, how is a church
supposed to stay ahead of the curve? Not only is a church
supposed to stay compliant with hundreds of laws and
regulations, it now has to keep watch for new and wacky
laws by local governments trying to raise additional tax
revenues.
You never know when
A church in Chicago, IL lost its
facilities because it was assessed taxes for "unidentified
taxable activities." The worst part is that the tax bill
was mailed to the wrong address. When the church finally
discovered that it had an unpaid tax, the county had already
foreclosed on its property.
Paul Rivera, StartCHURCH,
November 4, 2013
Remember. What government can do to
one church, it can and eventually will do to every
church.
Wake-up, Pastors! Wake-up, Christians!
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