Monday, December 15, 2008

Tax Exempt

I've heard a lot of talk about how the Mormon Church, upon pumping millions of dollars into Proposition 8 should have its tax exempt status revoked. Personally, I don't see why ANY church should be tax-exempt. I can understand not getting taxed based on your income from tithes. These are essentially donations, and I think donations should be tax exempt. But people, churches don't have to pay taxes for ANYTHING. My big beef with this is with regard to cities. (Of course it is.)

Cities have a dwindling tax base. Yes, this is largely due to population loss from white flight. However, the number of tax-exempt buildings within most cities is ASTOUNDING. Here's a list off the top of my head of tax-exempt institutions:
  • Universities
  • Government Buildings
  • Hospitals
  • Churches
And you guessed it, a lot of these institutions are predominantly found in cities. Their concentration is especially high in older cities. And even higher in cities with poverty.

Now, universities are good things to have. Assuming there isn't a walled campus, universities have help cities out tremendously. They bring in young, creative people. They foster new ideas. They give a city a sense of place. Some people even seem to get excited about their athletic programs. Though their grounds are tax-exempt there is a lot of spin off value that is generated.

Government buildings are good to have in cities too. Being located in the urban core means more people have access to the building. Given that governments are technically about all people (not just the rich) this should be a deciding factor. However, it is tough on a city when the municipality hosts not just city hall, but also the county seat, various federal buildings and branches of state offices. Those buildings add up, however they create a stable base of employment which supports various weekday spin-off activities (like lunch spots).

Hospitals. These are definitely important to have in a highly accessible (ie, urban) environment. It doesn't help anyone if by the time they get to the hospital, they are dead. Also, like government buildings and universities, hospitals and generate spin-off income for cities. Bed and breakfasts for families staying near a loved one in the hospital. Restaurants for families. Near-by medical offices.

Now churches. What do churches provide? What do they generate for the civic good? (Note: I am not questioning their spiritual efficacy, but am keeping this to the material body) A single preacher / pastor does not generate much spin off income. One does not see businesses appearing around churches. In fact, in many urban communities, churches spring up everywhere. I know of some parts of my city where there are multiple churches on a block. Keep in mind this is a de-populating rust belt city. Do the few remaining residents really need that many churches? And what happens when the church closes?

In short, get those church off the tax extempt status. Make them pay property tax like any other corporate business. Oh wait.... corporate businesses don't pay taxes either.

Ugh, I'll have to save that for another post....

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