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Since nobody has already pointed out the obvious, this forum is not the place for the OP to get a definitive answer. The OP should speak with a CPA or Real Estate Attorney for this information. Above our pay grade on this forum.
Actually, in this case, it wasn't that difficult of a question.
I am not aware of any state which levies ad valorem property taxes on church buildings operated by qualified religious organizations. Do you know of any state that does?
IANAL, but if an average private citizen like me owned a small strip shopping center and The Church of What’s Happening Now rents a storefront from me to use as a church, I would expect I still have to pay my normal taxes.
When we lived in Oklahoma we were eligible to be exempt from paying property taxes because DH is a 100% disabled vet. On a house that we owned and resided in. If we had rented, the LL would not have gotten a tax break.
IANAL, but if an average private citizen like me owned a small strip shopping center and The Church of What’s Happening Now rents a storefront from me to use as a church, I would expect I still have to pay my normal taxes.
I should have written what I wrote more clearly. When I wrote "church buildings" I was referring to buildings owned by a church, not the visual type of structure (i.e., a church's building doesn't need to look like a church). Also, if a building is no longer owned by a church, I don't consider it to be a church--it's a former church building. A property generally needs to be OWNED AND OPERATED by a qualified religious organization for its charitable/religious purposes in order for it to be exempt from property taxes.
Last edited by jackmichigan; 12-04-2020 at 06:17 PM..
Say a person was to buy a church which perhaps on the top floor had an apartment-living space.
If the church part was open to public for any religious worship on any holiday would the building lose its church exemption? Many current churches have portions where the church leaders live - the difference here I suppose would be this is totally non-denominational. I suppose I could give spiritual advice -- I'm a friggen lawyer LOL but would not make it a law office.
A person buying a church?
Most people who would buy a closed church gut it to make condos or a house from, I've seen both happen- condos made in some, and at least one large church in London- St Saviors- was bought by a rich guy for millions, he gutted it, had the ground under it excavated for a basement and large swimming pool and residence upstairs, a small part of it was retained AS a church;
Quote:
Only a rump of about a quarter of the Grade II listed Victorian building was retained for worship and community activities.
The rest was bought by developers who turned the derelict church into a four story home with basement swimming pool that was owned for six years by Les Misérables and Miss Saigon writer Alain Boublil.
He sold it for £13.5 million in 2009 to a Thai businessman who commissioned a second makeover costing an estimated £10 million and lasting almost three years. The work has dramatically upgraded St Saviours again into what the latest set of developers Rigby & Rigby describe as “undeniably one of the finest private homes in Knightsbridge.”
Once it's deconsecrated AS a church by the diocese and sold off, it's not a church any more, nor should it be tax exempt, that Thai businessman who bought St Saviors and spent $20 million in makeovers certainly can afford to pay tax on the building as can anyone who could afford to excavate the ground under a massive stone church and it's support columns to install a swimming pool with gold leaf on the ceiling above it!
There are many inexpensive churches that are going to rot. Google bethel Church 859 Reid in Lorain Oh. This beautiful sandstone building went to foreclosure and was already needing repair. Take a look. A family named a Krause got it for $100 in Dec 2017 and never paid a cent in taxes and eventually it will be foreclosed again. Its assessed at $240,000. If the county doesnt want to change the assessment - it should give breaks as to religious purpose. There are so many like this in New York State - Pennsylvania so I was just thinking of some other alternative than fighting the assessment.
K12144 Maybe it is alot of trouble- that church is being taxed at $9k a year and with no one paying it - it will sit around till foreclosure again and probably not be worth salvaging.
There are many inexpensive churches that are going to rot. Google bethel Church 859 Reid in Lorain Oh. This beautiful sandstone building went to foreclosure and was already needing repair. Take a look. A family named a Krause got it for $100 in Dec 2017 and never paid a cent in taxes and eventually it will be foreclosed again. Its assessed at $240,000. If the county doesnt want to change the assessment - it should give breaks as to religious purpose. There are so many like this in New York State - Pennsylvania so I was just thinking of some other alternative than fighting the assessment.
K12144 Maybe it is alot of trouble- that church is being taxed at $9k a year and with no one paying it - it will sit around till foreclosure again and probably not be worth salvaging.
That only happens if it is owned by a qualified religious organization.
The problem with large, old former church buildings is that they may be relatively inexpensive to buy but they are exceedingly expensive to fix up and maintain. Many churches sell their buildings because the small congregations can't afford to keep them--even when they don't have to pay property taxes. That's why many of the larger buildings--if they are to be saved at all--are bought by commercial enterprises. Some are turned into restaurants, bars, offices or concert venues.
One building in Pontiac MI went full circle. A church sold their building to a concert venue. It was sold again for a similar commercial use, but then sold again and returned to its original purpose. It's very difficult for an individual to purchase and maintain a huge old building on their own. Although significant, property taxes are usually the least of their worries.
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