Taxation—Church Property

• Key point. Church property may be exempt from state property taxes even if it is used infrequently for religious purposes.

• Key point. The exemption of church property from taxation may not be affected by the fact that it is rented to other religious organizations.

The New Jersey Tax Court addressed the eligibility of two church-owned properties for an exemption from property taxes. The Roman Catholic Archdiocese of Newark became the owner of the assets of two churches that had dwindled in membership. One of the churches ("Church A") conducted a weekly religious service, and its gymnasium was occasionally used by a Catholic youth basketball team for practice and team meetings. The second church ("Church B") was used for weekly religious services and as a storage area for various religious artifacts and furnishings. In addition, this church rented space to a public school. The ...