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Parsonages And Taxes

I tried doing several searches and did not see anything about this, so if it already exists, my apologies.

For those of you who may not know what a parsonage is, or are unfamiliar with the term, it is a house owned by the church where a pastor or minister can live for free. Most of them used to be located either on the property or right by it, and while some still do, others could be located anywhere within the city. As it stands, the church does pay taxes on the parsonage.

The question I want to pose to you is not should the church pay taxes on a parsonage, but should they pay taxes on a house once a house reaches a certain worth amount?

The reason this question came about is because there is a so called parsonage out on the beach that is worth 3.3 million dollars, and they are not paying taxes on it. It is also located about 10 miles away from the church. The appraisel officer for our district has been fighting the church for the past two years because that is an insane house for a pastor to have and not be paying taxes on. The house has five bedrooms, four baths, several tennis courts, a pool, a four car parking garage, etc. The appraiser is asking the church to provide documents that they are a non-profit organization.

Taxes Parsonages

I am not very familiar with the tax system in the US, but I think that as long as the pastor is living there for free, then why should not the Church pay for such taxes? If the parsonage becomes a "burden" for the Church to afford, can't the Church move the Pastor to a normal house? I do not see how a Pastor would have a need for a beach house with several tennis courts and a swimming pool, even more if he is not paying for it.

Parsonages And Taxes Beliefs Religious General

Here in the United States churches and church houses are not taxed because they are considered non-profit. I keep forgetting that might not be the norm everywhere else. A lot of churches have a parsonage that is not directly located on the church property, and they still do not pay taxes, but they are generally modest homes.

The issue here is not that the church can't or won't support it, because that church is all about the money, but the question is arising of whether or not they are cheating out the tax system by owning a home of that magnitude.

Taxes Parsonages

Oh, I understand now. Well, I think technically they are not cheating on the tax system since it's a Church-owned property and the Church is a non-profit organization but they are taking advantage of the system by purchasing fancy places they know they do not have to pay taxes on. It's not very honest in my opinion. Maybe some new laws within the tax system should avoid situations like this one. I just imagine wealthy Churches purchasing Beverly Hills houses for their Pastors and they do not have to pay a cent for it. Shame.

Taxes Parsonages

I suppose the burden is going to be with the church itself. If the church is willing to fund the building of such a luxurious parsonage (I believe the church is responsible for that), then the city, state, etc don't need to interfere. It is not the most moral practise, because it is using current law for extravagance, but it is not illegal. If this kind of practise becomes commonplace, I suppose the government can look into revising the law to allow up to a certain amount be tax-free, but that is getting into some sticky ground, ie, cost of living from state to state, etc.

Parsonages And Taxes

I think that if the church is the owner of the building, then they should pay the taxes. The better question, in my opinion is why the church is providing a three million dollar house for their pastor? But since they do own the house as a parsonage, then they have set themselves up in a bad situation in which they must pay the high taxes.

Parsonages Taxes

I think that's the dilemma Konq, is that the church, right now, does not have to pay taxes on a parsonage, because it is exempt. What BabyBlues is asking is whether taxes should be paid if the value of the parsonage goes over a certain limit.