Taxation—Church Property

Key point. Undeveloped land owned by a church may be exempt from property tax if it is used for church purposes, or is necessary to enhance the worship experience.

* The Maryland Court of Appeals ruled that 16 acres of undeveloped land owned by a church was exempt from property taxation. Maryland law exempts from taxation property that is "owned by a religious group or organization" if the property "is actually used exclusively for (1) public religious worship; (2) a parsonage or convent; or (3) educational purposes." In 1990, a church purchased a 27-acre tract of property in order to construct a sanctuary. A local zoning board limited construction on the property to a 7.5-acre "envelope" except that "the construction of driveways, road improvement, storm water management, utilities or other such improvements" could take place outside of the development ...