July 22, 2008
When you give back 10 percent of your income to the Lord, you expect that money to go to the Lord’s work. Those funds that you commit to your local church, you assume, are used to pay for the needs of God’s Kingdom (be that missions, evangelism, pastor salary, or a church building fund) – and most of the time that is exactly how those funds are used.
But an emerging situation in Ohio shows that local government wants a cut of the Kingdom’s funds, too. Unfortunately, Ohio is not alone in the growing temptation to tax churches by state or local governments.
In most states, church administrative offices are exempt from paying property taxes due to their tax-exempt status as charitable organizations with the Internal Revenue Service (IRS); but that is not the case for a church in Ohio. Our friends there may see some of their tithe dollars going to city and state government rather than to helping their churches, if local government prevails.
It’s a case an ADF-allied attorney is fighting right now that could have major implications for churches throughout the Buckeye State and prove instructive to other states.
The Church of God in Northern Ohio uses a building in Bath Township to coordinate its oversight of more than 120 member churches and congregations. The administrative offices are used for general governance, ministry training, and supporting member churches to execute the policies and teachings of the denomination. Housed there are the organization’s executive offices and support staff for various ministries such as missions, evangelism, and youth outreach. When church officials filed an application for exemption of property taxes based on their charitable status, they were denied - even though other non-religious tax-exempt organizations have not had their property tax exemption challenged.
“Without any supporting legal authority,” states ADF-allied attorney David Kennedy in a hearing brief filed this month, “the Tax Commissioner simply stated that…‘property used as the administrative headquarters for a church or congregation is taxable.’” Kennedy is representing the Church of God in Northern Ohio as they challenge this preposterous denial of their constitutional rights. You can read the entire brief by clicking here.
The ultimate goal of a church is to glorify God and share the Good News of the Truth of the Gospel, and then many other things that serve and help others. Taxation would be an onerous burden on such organizations. The tax-free status allows for more funds to go to the greater good, and that is exactly what our allies are fighting for in Ohio.
Kennedy tells us the initial hearing in the case went well. “We were able to show that every square inch of the building is being used by the institution in furtherance of its charitable purposes without a view toward profit,” he said via e-mail. We expect a ruling in this matter later this year.
Previous court rulings in Ohio point toward a victory in this case, but please remember Kennedy in your prayers as he fights for the Church of God in Northern Ohio and – ultimately – for all church organizations in that state. Ohio church members should be allowed to individually “Give to Caesar what is Caesar's, and to God what is God's," as Jesus commanded in Matthew 22:21. In this case, Caesar is seeking to take what is God’s. We must stand firm in such circumstances and defend Our First Liberty – religious freedom.