Taxation—Church Property

Taxation—church property

Key point. A church-owned parsonage that is provided on a rent-free basis to a minister is exempt from property taxation in many states.

Key point. Church-owned property that is used exclusively for religious purposes is exempt from property taxation in most states.

* A New York court ruled that a church-owned residence occupied by a non-ordained choir director was exempt from property taxes, not because it qualified as a "parsonage" but because of the many religious functions that occurred there. For many years, two homes owned by a church were exempt from property taxes on the ground that they qualified as "parsonages." The church's senior pastor occupied one of the homes, and the church's music director occupied the second home. In 2000, the tax assessor for the first time questioned the exemption of the home occupied by the choir director. ...