So who decides that churches don't pay tax. Is it the municipal, provincial or federal government? If I decided to make my own city, could I charge them the same property tax as everyone else?
Most churches are registered with the IRS as 501 (c) (3) charitable organizations, which are exempt from federal income tax under the IRS tax code. Most states have laws exempting 501 (c) (3) organizations from state sales or income taxes as well, and cities are generally subject to state tax laws.
The hitch is that 501 (c) (3)'s are subject to very strict rules when it comes down to political activity. Rules that some churches have played some very serious games with in recent decades.
I doubt you could levy taxes on a church in your city, but you could certainly have your city attorney and state and district attorneys investigate allegations of activities 501 (c) (3) groups aren't allowed to engage in under the code, and submit complaints to the IRS. You could most definitely do that. :)
Ah, but there's a problem with the 'submit complaints to the IRS' part. There is no IRS here. We're in Canada. We have the Canada Revenue Agency, and what fun they are to deal with!
Bah.. Pee on 'em all.. Charge the churches.. They can afford it.. Hell, the Mormon Church owns Corel outright (you know.. the guys who make Corel Wordperfect and Corel Draw...).
no subject
Date: 2008-01-13 09:59 pm (UTC)The hitch is that 501 (c) (3)'s are subject to very strict rules when it comes down to political activity. Rules that some churches have played some very serious games with in recent decades.
I doubt you could levy taxes on a church in your city, but you could certainly have your city attorney and state and district attorneys investigate allegations of activities 501 (c) (3) groups aren't allowed to engage in under the code, and submit complaints to the IRS. You could most definitely do that. :)
no subject
Date: 2008-01-13 10:42 pm (UTC)no subject
Date: 2008-01-14 07:14 am (UTC)