Religious Freedom and Property Tax Exemptions

1. Curt Ranta – Property Tax Exemptions For Religious Organizations Tax laws in the United States favor religious, charitable, and non-profit organizations after verifying that these institutions benefit the community. Churches, mosques, temples, and other religious institutions are exempt from property taxes. However, if these buildings/properties do not benefit the community, they are tax-deductible. In addition, organizations that engage in scientific research or environmental sustainability are also exempt from property tax. According to Curt Ranta, non-religious groups or institutions undergo a complex application and approval process before leveraging property tax exemptions. However, this is not the case with churches and other religious institutions because they automatically qualify for the tax exemption. Curt Ranta says the law does not require religious organizations to submit financial disclosure statements. Let us delve into details. Read on!

2. Property Tax Exemptions For Religious Organizations Non-profit organizations, educational institutions, medical research facilities, and religious ministries usually are exempt from paying property taxes. According to Ranta, each state in the U.S has specific requirements when applying for and getting approval for tax-exempt status. If you run a religious organization and want to leverage the property tax exemption, you must provide all necessary information to the Internal Revenue Service. The purpose is to get recognition from the Internal Revenue Service and get and maintain the property-exempt status. Curt recommends referring to IRS publication 557 to access the complete information before applying for the property tax exemption. The purpose is to determine whether your organization is exempt from federal income tax. Let us now discuss which churches can benefit from property tax exemption. Property Eligible for the Church Exemption Although the law makes all religious institutions eligible for property tax exemptions, Curt Ranta’s research shows that churches not involved in the following activities may not get the approval. A church that schedules worship services and sacramental activities, including funerals, weddings, bar and bat mitzvahs, baptisms, and confirmations An institution that supports religious worship use and non-for-profit activities, such as business meetings,

3. administrative tasks, choir practice, religious instructional sessions. A church that sells religious materials to participants of worship A church that operates a library for people in the community to read religious texts and manuscripts Property Eligible for the Religious Exemption According to Curt Ranta, properties eligible for religious exemptions are a church, mosque, or temple owned by a person. In simple words, this exemption applies to personal and real property. So, if you are the owner of real property and use it for religious purposes, you can get approval for tax exemption. However, your property must conduct worship services or operate one or more schools, including preschools, kindergartens, and elementary and secondary schools. Bear in mind that your property can’t leverage the tax exemption if you run a college-level educational institution on your property. On the other hand, if your property is a church building that operates a college-level educational institution, you can apply for a tax exemption. Moreover, a personal or real property used for educational purposes with no religious affiliation will not qualify for the tax exemption. How to File for Religious Exemption? Applying for a religious exemption requires you to follow a step-by-step approach. First, you need to gather essential information and prepare the necessary documents. Second, file a claim BOE-267-S with the country assessor.

4. You can find information about the local assessor on the BOE’s official website. Curt Ranta advises filing a claim in the local area where your property is located. The website also has the form available for download. After you get the approval for religious property tax exemption, the assessor in your county will evaluate your property’s activities to ensure whether you are still eligible for maintaining the tax exemption. Remember, this process is carried out annually and based on your property’s usage, and the assessor can change the eligibility status or issue a termination notice. Therefore, follow the rules and regulations to maintain your property’s tax-exempt status. Final Words Property tax exemptions are an excellent way for religious institutions to reduce their tax bill. The local government will assess your property, evaluate the activities/services, and determine its value. If your property fulfills the above requirements, you can benefit from tax exemption and continue serving the community. Until Next Time!