Property tax on a Church Parsonage?

[solidrockumc]

What is the name of your state (only U.S. law)? PA

Hello, I'm the bookkeeper for a very old church in PA. We have a Parsonage, a home for the Pastor that is owned by the church. When I started working here the previous bookkeeper had been paying the property taxes on the parsonage every year, so I continued to do so. We've recently been partnering with an organization that suggested we do not have to pay property taxes for the parsonage since it is church property and we are tax exempt. Can anyone shed some light on whether or not we should be paying the property taxes for the church parsonage? Thank you!

 

[LdiJ]

What is the name of your state (only U.S. law)? PA

Hello, I'm the bookkeeper for a very old church in PA. We have a Parsonage, a home for the Pastor that is owned by the church. When I started working here the previous bookkeeper had been paying the property taxes on the parsonage every year, so I continued to do so. We've recently been partnering with an organization that suggested we do not have to pay property taxes for the parsonage since it is church property and we are tax exempt. Can anyone shed some light on whether or not we should be paying the property taxes for the church parsonage? Thank you!

Here is some info:

Under the Pennsylvania Constitution, in order for an organization to qualify for property tax exemption, it must be an “institution of purely public charity”. The term is undefined in the Constitution, but the Pennsylvania Supreme Court has ruled that an “institution of purely public charity” does all of the following:

(a) Advances a charitable purpose;

(b) Donates or renders gratuitously a substantial portion of its services;

(c) Benefits a substantial and indefinite class of persons who are legitimate subjects of charity;

(d) Relieves the government of some of its burden; and

(e) Operates entirely free from private profit motive

I am seeing some indications out there that parsonages are not considered to be exempt from property taxes but I haven't found anything that is totally specific. I did see a couple of cases where church camps were not considered to be property tax exempt.

It might even vary some by county. I suggest that you consult a local real estate attorney.