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| Everyone Should have Skin in the Game | |
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| Tweet Topic Started: May 19 2012, 12:07 PM (400 Views) | |
| srj900 | May 19 2012, 12:07 PM Post #1 |
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Advanced Member
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We have a church nearby that has a separate banquet hall. They rent the hall out on a regular basis for weddings and other events. They are listed in the Yellow Pages under banquet halls and have a web site touting all they offer. Clearly a commercial venture. But, even though other banquet halls in the city pay about $100,000 per year in property and equipment taxes, the church pays no taxes at all. It angers me that I, as a property owner, pay more than this outfit. And I don't run a business on my property ! When I brought it to the attention of the city, they brush me off. "They don't need a business license. They don't have to pay taxes, because they are a church." Even after I show them evidence that it is clearly a for profit business. I consider the church a front for their money making venture, and I and the rest of the citizens have to subsidize city services to that building. I have read about churches elsewhere that have to pay property tax on buildings used for commercial ventures. One would think since the mayor is crying poor mouth, they would consider having this business pay it's fair share. Kind of smells of cronyism. |
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| Vanna White | May 19 2012, 03:43 PM Post #2 |
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Veteran
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I agree with you that churches are often not really acting like non-profit entities and many should pay taxes, but I think this is really a federal tax code issue. States and cities likely follow the same criteria as the feds in granting exemption from paying tax. |
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| srj900 | May 19 2012, 06:26 PM Post #3 |
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Advanced Member
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Well, when the issue was brought to the attention of the county, they said as far as property tax goes, it is the local municipality that makes the decision about property taxes. However, the feds. are very clear about drawing a line between what is non-profit and profit in regards to income tax. They don't likely care what type of sweetheart deal the city gives as far as property taxes. Their concern is income taxes, and the city does not have the authority to make them exempt from federal or even state income taxes. We aren't talking about donations to the church. That is non-profit. When they rent out a hall, which by the way is not attached to the church physically, for tens of thousands of dollars, to persons who are not even members of the church, that does not fall into the non-profit category. As far as the property taxes go, how unfair is it that a for profit, commercial building is exempt from taxes equal to about 50 homeowners ? And those homeowners don't run a business ! Don't turn a profit. And how unfair to other legitimate banquet halls in the city that are made to pay $100,000 in property tax and even pay tax on the equipment in the building? Is the church being given an unfair advantage? Can they charge less per plate if they are not being exposed to taxes others are? In essence, undercutting the competition. Again, there are cases where banquet halls owned by churches are made to pay property taxes. For some reason, someone in this city has made a decision to not consider making this outfit pay their fair share. |
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