Supervisors abate taxes for church

Jefferson County Supervisors voted unanimously today to abate property taxes levied on a recently purchased church property, and tabled a request from a second religious/charitable organization for tax abatement until the supervisors? next meeting Sept. 4.

First Christian Church (United Disciples of Christ) had sent representatives to the supervisors? board in the spring to ask for a tax abatement. The board asked the representatives to return again after the fiscal year, because the taxes in question had not yet been levied and the board could take no action on taxes not yet levied.

This morning, Rich Schaub, spokesman for the church, and a handful of other church members, attended the meeting to make their request in a timely manner.

?We sold our former church building at Third and Burlington in April,? said Schaub. ?It had tax-exempt status. We purchased the old Christian school on South Main that has sat empty except for a short time it operated as a bar.

?As soon as we purchased the new building, we filed for a tax-exempt status, but missed the Feb. 1 deadline,? said Schaub.

The property taxes on the recently purchased building across from the Jefferson County Health Center, has an annual tax bill of $9,100. Since property taxes are collected 18 months-lag time from assessment, Schaub said the church would owe two year?s worth of property taxes unless the supervisors granted an abatement.

?That will put quite a bite into our finances,? said Schaub. ?The seller did provide a partial payment for the first of those two tax years at closing. I don?t have the check amount with me today, but it was more than $7,000. The difference we?d owe out of the church?s finances would be approximately $1,810 [for assessment in January 2011] and the full $9,100 the second year.

?We?re most concerned with that second year, when taxes are due in May 2013.?

Supervisor Dick Reed said the supervisors could only take action for taxes levied.

?So in another 12 months, it will be a question for the board again but for a larger amount,? said Reed.

Supervisor Lee Dimmitt said previously the board had abated taxes for a church that had also missed the deadline.

?We?ve already set a precedent,? said Dimmitt.

Supervisor chairman Steve Burgmeier said he?d like to ?put out on the table that all taxing bodies, including us, have set annual budgets using figures from tax assessments.?

?The big thing I look at, is being fair and equitable to all,? said Reed. ?I understand about the burden, especially on churches and non-profit groups. But should 16,000 people in the county subsidize this situation ? or the next one?

?Are you representing just your group or the whole county? We?re facing a loopy law,? said Reed. ?This should have been allowed for in the purchase agreement. I?d like to just give it [tax abatement] to you, but it?s a tough one.?

Churches are tax-exempt, but the congregation and the supervisors are in this position because of goofy laws, agreed Burgmeier.

?We could abate this and it would not the end of the world,? said Reed. ?A precedent was already set with Word of Life Church. We awarded them a tax abatement. I understand setting a precedent, but that doesn?t mean we can?t change it.?

The three supervisors agreed to grant the tax abatement for the difference in 2011 property taxes, approximately $1,810, for First Christian Church.

Attorney Paul Miller represented Jubilee Christian Ministries, also requesting a tax abatement.

?We sold the old Spurgeon building June 29, and put it back on the tax rolls,? said Miller. ?We?re also a nonprofit, charitable organization. We?re asking for abatement because taxes should never have been levied in January 2011. The building continued to be used for charitable activities and was owned by a charitable organization up through June 2012.?

He provided several pages of documents citing revenue law and corporation papers for Jubilee Christian Ministries.

?It came to my attention the church was meeting on Sundays out at the former Bethesda church [on Highway 34 east of Fairfield], and the old building was used for organized Bible meetings,? said Sheri Neff, Jefferson County assessor.

Neff said she contacted the state revenue office to ask if Bible meetings qualified for tax-exempt status, and learned the building could be taxed as of Jan. 1, 2011.

?According to the Department of Revenue, Bible studies are not a tax exempt status.

?I tracked down Greg Crawford with much effort and sent him the tax assessment,? Neff said. ?He never made any appeal, made no inquiries, asked no questions, so the assessment went forward.?

Miller said there?s no doubt taxes are owed, ?But we contend there was not authority to levy taxes, and there needs to be a review board if the status changes. We have to be given notice.?

Neff said the verbiage on the 2009 tax notice said ?exempt? and the following statements did not have ?exempt? on them, indicating the change.

?I understand what you?re asking,? said Reed to Miller. ?But I have a question as to whether there should have been a board of review.?

Burgmeier suggested tabling the request so supervisors could consult with assistant county attorney on the legal issues before reaching a decision.

The request was rescheduled for the Sept. 4 supervisors? meeting agenda.