Jump directly to the content

Property Tax Exemption Does Not Apply to Municipal Special Assessment

Key point. Churches are exempt from property or ad valorem taxes in every state, but this exemption does not necessarily apply to special assessments that require landowners to pay for improvements that directly benefit them.

A Minnesota appeals court ruled that a city's imposition of a special assessment on abutting landowners to cover the costs of street resurfacing could be applied to churches.

In 2016, a city imposed a special assessment of $31,191.30 against a church related to a street resurfacing project. The church was informed that it was required to pay off the amount in five annual principal installments beginning in 2017. The church challenged the assessment, claiming that it violated a provision in the state constitution exempting from taxation "public burying grounds, public school houses, public hospitals, academies, colleges, universities, all seminaries of learning, ...

Join now to access this member-only content

Become a Member

Already a member? for full access.

Related Topics:
Posted:
  • August 27, 2018

Related ResourcesVisit Store

2020 Church & Clergy Tax Guide
2020 Church & Clergy Tax Guide
Find comprehensive help understanding United States tax laws as they relate to pastors and churches.
Managing Church Facility Use
Managing Church Facility Use
Find insights to equip your church to host members and strangers.
Church Finance
Church Finance
Learn about budgeting, financial reporting, tax compliance, insurance coverage, and more.
Planning a Church Building Project
Planning a Church Building Project
Learn about zoning laws, property sales, church construction, financing, and more.