Closed churchs to be taxed

Closed churches and religious schools will likely be taxed in Luzerne County next year, county Assessment Director Tony Alu said Friday.

Although this applies to any religion, the impact would essentially be felt by the Diocese of Scranton, which has already started implementing a plan to close some schools and half of the 90 churches in Luzerne County.

Alu said he recently learned that several other counties already started taxing closed churches and religious schools, maintaining that their closure no longer qualifies them for tax-exempt status.

Luzerne County’s Board of Assessment Appeals gave Alu the green light to proceed with the taxation plan, he said.

The law says all churches or “actual places of regularly stated religious worship” should be exempt, but Alu said this condition isn’t met when there is no regular worship.

Scranton Diocese spokesman William Genello could not be reached for comment for this story.

The Diocese of Allentown has filed court challenges contesting the taxation of shuttered churches and schools in Northampton and Carbon counties. The diocese argues that the buildings should be exempt under a different part of the law forgiving taxes on public charities.

The Allentown Diocese resorted to court challenges after its requests for continued tax exemption were denied by assessment appeals boards in both counties. The diocese also argues that the assessments are too high.

Taxation of Luzerne County’s closed churches and schools will likely prompt a debate over the appropriate values of these buildings, Alu said.

The amount of taxes that would have to be paid has not been calculated, Alu said. He instructed his staff to start identifying impacted properties.

The Transfiguration School in West Hazleton is one example of a building that would now be taxed by the county. The school, which closed in the summer of 2006, is assessed at $1.166 million, county assessment records show. School, county and local taxes would be $17,589 based on this year’s tax rates.

The Sacred Heart Church in Plains Township, which closed in July, was originally assessed at $543,500, but the value was reduced to $85,500 after an assessment appeal. Property taxes would be about $1,807.

The Ss. Peter and Paul Church in Hazleton, which recently closed, is assessed at $689,600, which would equate to $10,401 in property taxes.

Alu said the Scranton Diocese will have ample opportunity to argue why properties should remain exempt during assessment appeal hearings.

County appeal board rulings would still take effect if the diocese went to the next level of filing a court challenge, but the taxing bodies must refund overpayments if an assessment reduction or tax-exempt status is granted in court.

Carbon County Chief Assessor Kim Steigerwalt said she was surprised that the taxation of closed religious buildings did not create a stir in her county.

A total 24 church properties in five municipalities were added to the rolls – 11 churches, six vacant lots, a social hall, two schools and four rectories.

Alu said vacant lots or parking lots may also be taxed in Luzerne County if the churches are closed. Parking lots are not currently taxed because the county historically considered them part of the church, Alu said.

Church-owned living quarters for a reverend are already partially taxed, Alu said. The land is taxed in full, but only 10 percent of the building portion of the assessment is taxed, he said. Full taxation will be considered if the church is closed and a reverend no longer lives there, he said.