Exemptions Come With Conditions
Although there seems to be little sentiment for doing away with tax exemption for houses of worship, that does not mean the practice comes without strings. Indeed there are many.
The government conditions tax exemption on several conditions. A charity or house of worship must operate for the public good, not someone’s private benefit. Most of the time this is not a problem for a church. Pastor Bob down at the First United Methodist Church pays personal income tax just like you and me, but his church is tax exempt, and most people don’t mind that.
A handful of religious leaders make things difficult. When Americans see TV preachers with nine mansions, 25 sports cars and a closet full of $2,000 suits claiming tax exemption, they get angry – and rightly so. Church tax exemption was never meant to become a vehicle for amassing a personal, tax-free mountain of wealth.
Tax exemption was also never intended to be a dodge to cover profit-making activities. Some religious groups have branched out into the purely secular world, running business that have nothing to do with spreading the faith. These entities should be fully taxed.
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We inherited tax exempt religious property from the middle ages. In those days religion served a greater function in society . Schools, orphanages, hospitals, and care of the indigent was the purview of the church. At our Revolution we retained those privileges as religion still carried on many of those functions.
Today Islam, Judaism, Catholicism, Lutheranism, Mennonites, Quakers, and Mormons maintain some (and in some cases all) of these institutional charities. It is quite appropriate to maintain their tax exemption privileges as they ease the burden on the Public as a whole.
Much of American religions (if not most) do not have such a charitable inclination nor institutions. They use their money for clergy salaries and expensive facilities for their memberships enjoyment. They do not substantially offer service to society and therefore should not be entitled to the same exemptions that more charitable religions.
It is time to take into account the charitableness of religion in determining tax exemption. Simply being a religion isn't enough.
Many churches have business holdings such as farms, office buildings, businesses. These should not be tax free or property tax free.