Dear Thom,

I would like to refer you to Reagan's Economic Recovery Tax Act [ERTA], 1983.  Reagan convinced everyone that churches represent an underground economy greater than the Mafia!  If a church is used just for non-profit community service, it does not have to pay property taxes.  However, churches must pay all other fees and assessments.  They must file on-profit use request every year.  By law, churches can rent to other non-profits.  The idea of letting people make a "donation" in exchange for using any room or grounds went out the door with ERTA.  People can no longer donate to churches and deduct their donations by providing a cancelled check.  The church must post annual statements showing a persons contributions, which may not be directed toward the banafit of any individual [i.e. using the money for day-care, provate school, college, etc.

Ministers are placed in a unique category.  We are paid as "Independent Contractors, which means we are paid as self-employed.  The big switch comes as tax time, when we are taxed as employees.  I won't go into all of the minutia;  suffice it to say ministers pay property tax.  If a minister is provided a parsonage, s/he must pay income tax on the rental value of the parsonage.

Each of the churches had to increase their budgets by 20% when I insisted they conform to the law.  Reagan promised every church and minister would be audited.  That's impractical.  I, personally, have been audited 8 times in the past thirty years.

For fun someday, you ought to check out the history of what the tax  [local & federal] did to the Garden Grove Community church [The Crystal Cathedral].  They made Robert Shuller Ministries pay taxes on the Pulpit part of the church as his own personal property.

I am a progressive.   Unlike thhe Republicans, I am happy to pay taxes.  The law concerning churches and ministers [any church empployee, for that matter] has become complicated.  Every time there is a new question about ministers, the IRS has a stock answer, pay the taxes or take it to tax court!!

Please do your home work ,Thom.  I get a little peaked when I hear you talking about the tax-free status provided by Johnson.  You need to see what Reagan did to us.  My pastorate in Santa Cruz was the home of three black churches and the [East] Indian religious community.  We had the only gym available to schools and other non-profits on the west side of Santa Cruz, CA.  The church is the center of the community [even though the congregation is small and poor].

Rev. Dr. Bob Hasty, minister [retired] Christian Church (Disciples of Christ)

Garden Grove, CA