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November 29, 2012
Should Megachurch's Cafe and Gym Be Taxed as Businesses?
(Updated) Five-year dispute centers on $425,000 tax bill for Christ Church Nashville's activities center.
Update (Mar. 28): Religion Clause reports that the Tennessee Court of Appeals has ruled that "a portion of a church's multi-million dollar family life center is not exempt from property taxes."
According to the court's decision, the gym is eligible only for a 50-percent tax exemption, and the cafe and bookstore are not eligible for any exemption because they are retail facilities.
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According to a lawyer for a Nashville-area megachurch fighting a mega tax bill, the Tennessee tax authority is forcing the church to pay up on properties that should not be taxed.
Since 2007, Christ Church Nashville has butted heads with the Tennessee State Board of Equalization over a $425,000 property tax assessed after the church added an activities center—including a bookstore, café, fitness center, and gym&mdsash;in 2004. Now, the church is appealing an earlier ruling in the Tennessee Court of Appeals, arguing that proceeds from the facilities go into church outreach—and thus should be tax exempt.
The equalization board argues that other church bookstores pay property taxes, and that "Christ Church Nashville was charging retail prices and membership fees rather than accepting donations, which would qualify the properties as businesses."
But the church's attorney Eric Stanley argued that while the facilities may appear business-like, they are run by a pastor and are integral parts of the church’s mission of “evangelizing and building up its members.”
CT previously reported that Christ Church was arguing for complete exemption last year.
Comments
Yeah, the church should get taxed for this. They should add a retail sales tax to the products and memberships and submit it. The church gets the same amount for outreach and no longer appears to be abusing its rights. The taxes go toward building our own communities and the church gains more respectability in the eyes of people who see it as greedy. It's a win for everyone. Other charities do the same - tax exempt for donations but taxed for product and service sales.
Posted By: Teresa Jones | November 29, 2012 11:08 AM
Tennessee (where I live, just a few miles from this church) does not have an income tax. Property taxes and sales taxes are what pay our police and fire and road maintenance.
Christ Church is in a tony part of town and this "evangelising and building up its members" is less a David Wilkerson-style outreach and more of a country-club atmosphere where the church members can go without encountering secularisation when they workout or have coffee.
They expect to rely upon the services of the community--like the aforementioned fire department--without contributing. They also hurt actual businesses in the community, like Gold's Gym, Gaines Fitness, Family Bookstores and the local coffee shops.
There is no reason for them to weasel out of paying their fair share. I say that as a devout Christian, not as a grumpy atheist.
Posted By: Katherine Coble | November 29, 2012 11:34 AM
I think that all churches should pay income tax on every dollar they receive. It is time for us as Christians to stop letting the government have a say in how we function. There are strings tied to all tax benefits and incentives that big daddy government gives.
Posted By: Robin M | November 29, 2012 4:13 PM
They are running a business, and running it as a business. They should be compelled to pay taxes like all of the other businesses that they are in competition with.
Posted By: Jim | November 29, 2012 7:25 PM
To start selectively taxing certain parts of a non-profit organization will leave them with less money to help those in the community that need assistance. What next? Taxing the church parking lots? The church can stretch a dollar much further than our government. Why in the world would we want to entrust more money to the government only to be wasted?
Posted By: Darrell Bowen | November 29, 2012 10:45 PM
So I can open up a "bookstore, café, fitness center, and gym" and as long as I have a pastor or priest run the operation =TAX FREE!? What a great racket, where do I sign up?
Now asking myself, WWJD?, I would have to go with probably not ever open a "bookstore, café, fitness center, and gym" to start “evangelizing and building up its members.” Obviously, the poor, needy and less fortunate have to take a back seat while “evangelizing" but that's the price those poor Christians pay for those able to actually spend money on tax free services and goods.
Keep up the good work, you'll bring 'em in by the droves this way, my hat's off to these clever folks.
Posted By: Wilson | January 31, 2013 8:53 PM
Hi there I have just read your info and as a Christian in the U.K. we have the Tax Man do Diffrrnet things in as being Tax Excempt in certain ways in the U.K. Church yet I would just like to say about the Paster in Nashville who is on hunger strike over what is going on as I am looking to go on Hunger Strike because of the way the Charity Managers were I work. Have put me in a lot Trouble all Because of not doing what thay Promised me thay would When I first came to the Charity for Help Safty And Refuge. the Charity Managers said to me there to Help Me in the Ways I Asked for Help in YET The Charity Managers Did not do what thay Promised Me thay would Do to Help and Protect Me now I am in Much more Trouble than I came to the Charity with Yet the Charity Managers Have said to me that Thay Cant get Done as thay have Rich And Power full People on there Side And thay Have alot Of favirots on there side Against me so Your on your Own The Charity Managers Will be Listened over you and I know I have at Least ( 800 against me in the Charity Past And Present I came To the Charity for Help. I did not need all that I have now Even My Christian Counciler said to me in ( 2004 - 2005 ) he said what Your Charity Managers have done to You could take Years to iraicate if Ever And what Little Self Esteam you have left thay are Destroying if thay Had Done there Promised Duty Of Care you Would Not be in this Mess today. in My Counclers Oppion The Charity Managers Have Very Near to have Ruined you Life Because of not Helping you in the Way that You said you Needed Help in I would have Left long ago if I had not Been Living In FEAR of what My Managers were and are Doing to me in the Charity were I work. P.S. Will You Send me A Copy of what I have just Writen to my Email Thank You My Prayers are with you
Posted By: Steve ray | February 1, 2013 4:30 PM
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