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In reply to the discussion: Catholic Church To Lose Historic Property Tax Exemption In Italy [View all]pnwmom
(108,959 posts)37. It was settled by the SCOTUS long ago that the exemption doesn't apply to commercial properties.
http://law.justia.com/constitution/us/amendment-01/05-tax-exemptions-of-religious-property.html
Tax Exemptions of Religious Property.Every State and the District of Columbia provide for tax exemptions for religious institutions, and the history of such exemptions goes back to the time of our establishment as a polity. The only expression by a Supreme Court Justice prior to 1970 was by Justice Brennan, who deemed tax exemptions constitutional because the benefit conferred was incidental to the religious character of the institutions concerned.178 Then, in 1970, a nearly unanimous Court sustained a state exemption from real or personal property taxation of property used exclusively for religious, educational or charitable purposes owned by a corporation or association which was conducted exclusively for one or more of these purposes and did not operate for profit.179 The first prong of a two-prong argument saw the Court adopting Justice Brennans rationale. Using the secular purpose and effect test, Chief Justice Burger noted that the purpose of the exemption was not to single out churches for special favor; instead, the exemption applied to a broad category of associations having many common features and all dedicated to social betterment. Thus, churches as well as museums, hospitals, libraries, charitable organizations, professional associations, and the like, all non-profit, and all having a beneficial and stabilizing influence in community life, were to be encouraged by being treated specially in the tax laws. The primary effect of the exemptions was not to aid religion; the primary effect was secular and any assistance to religion was merely incidental.
____________________________
http://atheism.about.com/od/churchestaxexemptions/a/overview.htm
4. No Tax Exemptions for Commercial Activity
Tax exemptions are almost entirely restricted to those affairs which are religious rather than commercial in nature. Thus, there are numerous tax exemptions on property owned by churches and used for religious worship, but exemptions are normally denied on property used for commerce and business. The site of an actual church will be exempt, but the site of a church-owned shoe store will rarely, if ever, be exempt.
Court Cases:
Gibbons v. District of Columbia
Diffenderfer v. Central Baptist Church
The same is true for income from sales. Money a church receives from donations of members and from financial investments are normally treated as tax-exempt. On the other hand, money which a church receives from the sale of goods and services even including goods like religious books and magazines will normally have sales tax applied, though not income tax at the other end.
___________________________________________
Here is an example of the law in my state. The exemption applies to non-profits in general, not just churches, and it doesn't apply to property owned by non-profits but used for commercial purposes.
http://dor.wa.gov/docs/pubs/industspecific/nonprofit.pdf
Nonprofit organizations in the state of Washington may be eligible for an exemption from property tax. In most situations, nonprofit ownership is required to qualify for an exemption. In addition, the organization must conduct an activity specifically identified in the exemption laws.
The use of the property determines the exemption. Not all nonprofit organizations have a purpose and activity that entitles them to an exemption.
Tax Exemptions of Religious Property.Every State and the District of Columbia provide for tax exemptions for religious institutions, and the history of such exemptions goes back to the time of our establishment as a polity. The only expression by a Supreme Court Justice prior to 1970 was by Justice Brennan, who deemed tax exemptions constitutional because the benefit conferred was incidental to the religious character of the institutions concerned.178 Then, in 1970, a nearly unanimous Court sustained a state exemption from real or personal property taxation of property used exclusively for religious, educational or charitable purposes owned by a corporation or association which was conducted exclusively for one or more of these purposes and did not operate for profit.179 The first prong of a two-prong argument saw the Court adopting Justice Brennans rationale. Using the secular purpose and effect test, Chief Justice Burger noted that the purpose of the exemption was not to single out churches for special favor; instead, the exemption applied to a broad category of associations having many common features and all dedicated to social betterment. Thus, churches as well as museums, hospitals, libraries, charitable organizations, professional associations, and the like, all non-profit, and all having a beneficial and stabilizing influence in community life, were to be encouraged by being treated specially in the tax laws. The primary effect of the exemptions was not to aid religion; the primary effect was secular and any assistance to religion was merely incidental.
____________________________
http://atheism.about.com/od/churchestaxexemptions/a/overview.htm
4. No Tax Exemptions for Commercial Activity
Tax exemptions are almost entirely restricted to those affairs which are religious rather than commercial in nature. Thus, there are numerous tax exemptions on property owned by churches and used for religious worship, but exemptions are normally denied on property used for commerce and business. The site of an actual church will be exempt, but the site of a church-owned shoe store will rarely, if ever, be exempt.
Court Cases:
Gibbons v. District of Columbia
Diffenderfer v. Central Baptist Church
The same is true for income from sales. Money a church receives from donations of members and from financial investments are normally treated as tax-exempt. On the other hand, money which a church receives from the sale of goods and services even including goods like religious books and magazines will normally have sales tax applied, though not income tax at the other end.
___________________________________________
Here is an example of the law in my state. The exemption applies to non-profits in general, not just churches, and it doesn't apply to property owned by non-profits but used for commercial purposes.
http://dor.wa.gov/docs/pubs/industspecific/nonprofit.pdf
Nonprofit organizations in the state of Washington may be eligible for an exemption from property tax. In most situations, nonprofit ownership is required to qualify for an exemption. In addition, the organization must conduct an activity specifically identified in the exemption laws.
The use of the property determines the exemption. Not all nonprofit organizations have a purpose and activity that entitles them to an exemption.
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No one can say "holiday" tree without being accused of warring on Christmas, Jesus and Christendom.
merrily
Oct 2012
#20
There have been Federal SCOTUS rulings on this, so the state laws are in line. n/t
pnwmom
Oct 2012
#38
It was settled by the SCOTUS long ago that the exemption doesn't apply to commercial properties.
pnwmom
Oct 2012
#37
Did you read the other part of the post? It addresses the issue of taxation of commercial use of the
pnwmom
Oct 2012
#43
Can you show me the law that applies where you live? That applies exemptions to all properties
pnwmom
Oct 2012
#46
Since a lot of religious institutions are recieving tax dollars, they should pay.
freshwest
Oct 2012
#4
There is so much irony in that story the Pope had to change his underwear after hearing the news
davidpdx
Oct 2012
#23
I've never understood how exempting churches complies with separation of church and state.
SunSeeker
Oct 2012
#19
I will gladly let them tax the churches here...Say, oh, a modest 10%? That way, they can pay for
silvershadow
Oct 2012
#27
Depending on the location, church-owned buildings not used for religious worship are taxed in the US
jhasp
Oct 2012
#36
some are not going to like facts getting in the way of their blind hatred for all things religious
leftyohiolib
Oct 2012
#40
Actually it was the Lateran Treaty of 1929 signed between Mussolini and the Pope
WilmywoodNCparalegal
Oct 2012
#58