How do you feel about churches not having to pay property tax? Is this fair?

They are supposed to lose the tax exemption if they preach politics from the pulpit, but many do and nothing ever happens. I feel none should be exempt any way.

I have no problem with enforcing the requirements for tax exempt status. I think this article makes interesting points about churches' involvement in slavery abolition and the civil rights movement.

Quote :

Must churches obtain official 501(c)(3) status from the Internal Revenue Service to be exempt from taxation?

No, churches are automatically exempt from taxation, according to attorney Marcus Owens, Washington, D.C., a former head of the IRS’ tax-exempt division, now defending a California church against the IRS (see related story).

Must churches be 501(c)(3) for their members’ tithes, donations, and gifts to be tax-deductible?

Again, no, according to Owens and to IRS regulations readily accessible to the public.

But even if a church chooses not to be recognized as a 501(c)(3) tax-exempt organization, Owens said, provisions of the federal tax laws prohibiting “intervention in a political campaign” still apply to all churches. If the IRS finds that a church has violated this prohibition, the activities that constituted the violation are subject to an excise tax, according to the IRS.

“A church needs no ruling from the IRS to be exempt from taxation,” Owens said. “It is exempt by virtue of being a church. But churches are still bound by provisions of the Internal Revenue Code in regard to intervening in political campaigns.”
The Church’s Free Speech Rights

Regardless of whether a church has 501(c)(3) status, the church always has the right to speak out on the issues of the day, according to Glen Lavy, a constitutional attorney with the Alliance Defense Fund.

Because the question comes up so often, the ADF on its website (www.alliancedefensefund.org) has provided “Guidelines for Political Activities by Churches and Pastors” (http://www.alliancedefensefund.org/userdocs/GuidelinesforChurchesandPastors.pdf).

“In regard to churches getting involved in social issues, the IRS rule against intervention in a political campaign doesn’t apply,” Lavy said.

What does apply, then?

“IRS rules have the force of law,” Lavy said. “The government’s administrative agencies, like the IRS, have the ability to enact regulations which have validity, unless they are changed by the legislature. Congress has the right to change any regulation.”

The ADF’s “Guidelines” specify that churches are not allowed to endorse a particular candidate, contribute either funds or in-kind services to a candidate’s campaign, or distribute literature for a particular candidate

“Issue advocacy, however, may not be limited by government and can be freely engaged in by churches,” the ADF pamphlet says. “As long as one does not use explicit words expressly advocating the election or defeat of a clearly identified candidate, one is free to praise or criticize officials and candidates — this is called issue advocacy.”

Although churches are often threatened with loss of their tax-exempt status — sometimes by anti-church activists, sometimes by the IRS itself — there is no law that restricts churches from defining moral positions and asking people to vote accordingly, according to the ADF.

This isn't the whole article...http://chalcedon.edu/research/articles/do-churches-need-501c3-status/

Eh, sure. It gives the government bargaining power.

[quote="Alan Smithee"]I have no problem with enforcing the requirements for tax exempt status. I think this article makes interesting points about churches' involvement in slavery abolition and the civil rights movement.

I think the minute they get involved in politics, whether it's having a political candidate speak at their church, hand out voter guides or otherwise attempt to influence an election, the tax exempt status should be taken away.

Churches should pay taxes just like any other organization (private or public). The end!

captainbryce wrote:

Churches should pay taxes just like any other organization (private or public). The end!

That would certainly eliminate a lot of the abuse by them AND generate revenue. I never saw that as a separation of church & state issue in the first place.

Suzi wrote:

They are supposed to lose the tax exemption if they preach politics from the pulpit, but many do and nothing ever happens. I feel none should be exempt any way.

churches do much for the community. Churches here have food banks, run homeless shelters, abused womens shelters, and even provide entertainment and daycare for little to no cost for working parents. Why should they have to pay taxes? Unless EVERY non-profit winds up paying taxes... I do not agree.

wants2laugh wrote:

churches do much for the community. Churches here have food banks, run homeless shelters, abused womens shelters, and even provide entertainment and daycare for little to no cost for working parents. Why should they have to pay taxes? Unless EVERY non-profit winds up paying taxes... I do not agree.

Churches already have an advantage over other other 501c3 non-religious organizations. Churches don't have to apply for that status. They already are tax exempt. A common reason they do apply with the government is to make it easier on people who donate to them to get the tax write off. But it's not required. If a church doesn't see any advantage to apply to the IRS for tax exempt status, they can say whatever they want.

It's not fair that churches are tax exempt at all IMO. Church stopped being all about charity long ago. Now they are as about profit as any other business. I say tax 'em!!!

wants2laugh wrote:

churches do much for the community. Churches here have food banks, run homeless shelters, abused womens shelters, and even provide entertainment and daycare for little to no cost for working parents. Why should they have to pay taxes? Unless EVERY non-profit winds up paying taxes... I do not agree.

Most homeless shelters and food banks are already tax exempt (whether they are part of a church or not). If a church runs a food bank or homeless shelter, then it should be "partially" tax exempt, but since that is typically not the priority for most churches, they shouldn't have complete exemption for that. Secondly, Not EVERY church does those things. I think consideration for tax exemption should be determined on a case-by-case basis. IF a church demonstrates that it is actually beneficial to the community at large by providing these services to EVERYONE in the community, then that would be fair. But many churches simply take advantage of not having to pay taxes while giving back nothing to the community other than their sermon. And I don't think that these churches should be tax exempt. How much does the Church of Scientology give back to the community of Hollywood I wonder?