Recent Developments in Arkansas Regarding the Taxation of Church Property

Taxation-church property

• Key point. Property tax exemptions for churches generally apply not only to the ground occupied by the church building, but also surrounding grounds, driveways, and parking lots.

An Arkansas court ruled that a church and its surrounding grounds, including a parking lot, were exempt from property tax. The church was established in 1991 and owned a 1.05 acre tract upon which is located a 6,800 square foot building containing a sanctuary, chapel, Sunday School classrooms, a religious lending library, fellowship areas, administrative offices, and guest quarters for visiting pastors and missionaries. The balance of the property consists of landscaped grounds, approach roads, and a parking area. The church qualifies as a church for federal tax purposes. It is governed by a three—member board, elected by the congregation upon the recommendation of the pastor. ...