Jump directly to the content

Church Parking Lots Tax Exempt

Decision made even though lots were rented to other businesses for majority of week.

Key point: In some states, church-owned parking lots will be exempt from property taxation under a state law exempting properties used primarily for religious worship.

In an important ruling, the Texas Supreme Court concluded that a church's parking lots were exempt from property taxation, despite the fact that they were rented for most of the week to a neighboring business.

An inner-city church owned two parking lots (consisting of 407 parking spaces) that it leased to a neighboring business from 7:30 a.m. to 5:00 p.m., Monday through Friday. The church received annual rent of $111,000 from the lease of its parking lots. A local tax assessor determined that the parking lots were not exempt from property taxes since they were rented to a neighboring business, and the church appealed this decision in court.

A trial court concluded that the lots were exempt, but a state appeals court disagreed. ...

Join now to access this member-only content

Become a Member

Already a member? for full access.

Related Topics:
Posted:
  • May 3, 1993

Related ResourcesVisit Store

2021 Church & Clergy Tax Guide (Book)
2021 Church & Clergy Tax Guide (Book)
The most comprehensive and authoritative tax guide available.
Avoiding Church Lawsuits
Avoiding Church Lawsuits
Create proactive procedures to avoid common reasons why churches most often go to court.
Understanding Church Insurance
Understanding Church Insurance
Understand your church's insurance needs to be assured you have adequate coverage.
Planning a Church Building Project
Planning a Church Building Project
Learn about zoning laws, property sales, church construction, financing, and more.