Elimination of religious property tax exemption proposed

Property owned and used by religious organizations would be subject to property taxes under a bill heard by the Revenue Committee Jan. 24.

LB675, introduced by Omaha Sen. Ernie Chambers, would eliminate tax exemptions on all real property, tangible depreciable personal property and motor vehicles owned or used by religious organizations, effective Jan. 1, 2015. Chambers said everyone should pay their fair share of taxes, including religious organizations.

“When some do not put their part in, others have to pay more than what their share should be,” he said. “If taxes were paid on the many churches in this state, perhaps the state’s assistance to local governments and schools would be diminished considerably, leaving more in the state coffers for other purposes.”

Justin Evertson, representing the Secular Coalition for Nebraska, supported the bill, saying it is time to start taking a critical look at tax exemptions.

“We think this is definitely a violation of the separation of church and state,” he said. “We don’t think this will pass, but we definitely think it’s time to have this discussion.”

Nebraska Catholic Conference executive director Jim Cunningham opposed the bill, saying there is no compelling reason to terminate the traditional exemption.

“[The bill] would shatter public trust pursuant to the many ways that nonprofit religious organizations use their property to advance the common good,” he said.

The committee took no immediate action on the bill.