Local Tax Issues

Milwaukee Pastors Frustrated By "Tax and Take" Property Assessments

Milwaukee Pastors Frustrated By "Tax and Take" Property Assessments

Pastors in Milwaukee are frustrated by what they have termed "tax and take" property assessments of their churches. 

A report from the Milwaukee Journal Sentinel details how multiple Black pastors were "more frustrated than when they walked in" as they left a Monday, June 12 Common Council committee meeting regarding the tax-exempt status of their churches.

According to the newspaper, local clergy first began raising red flags about church property assessments in 2021, referring to the process "tax and take." This term arose because of rising tax costs and increased tax foreclosures on church properties in the area.

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Credit: jferrer/Getty Images

Despite the fact that this issue has existed for two years, the Milwaukee Inspector General's office only recently issued a report regarding the matter.

The document is extensive, addressing numerous complaints, including the fact that "pastors on the north side of Milwaukee argued that because they have been recognized under the Internal Revenue Service (IRS), Internal Revenue Code (IRC) 501(c)(3) as a nonprofit organization and exempted from federal taxes, they should be automatically exempted from property taxes as well."

Inspector General Ronda Kohlheim's team found that, for nonprofits, in "most states, eligibility for taxation is the general rule while an exemption from property taxes is the exception."  

In addition, the city stated that all but one of the pastors' claims about the treatment of their churches' values were unsubstantiated.

On May 22, the Common Council held a meeting to review the report but pastors allege that they were not told of the gathering. The lack of communication regarding the first meeting led to yesterday's session, which numerous members of the Milwaukee clergy attended.

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Credit: SamWagnerTimelapse/Getty Images

“I’m frustrated,” Reverend Steven Tipton shared with Journal Sentinel staff, “On one hand she’s [Kohlheim] speaking of them as being unprofessional, not following protocol and being inconsistent. But on the other hand she says no we don’t see anything done wrong. I think she’s trying to satisfy the city but there’s an abundance of evidence that shows these issues [with church property tax assessments]. You can’t have it both ways.” 

At this point, the disagreement about the city's tax regulations have pushed certain clergy members toward filing a lawsuit.

Alderman Michael Murphy told the pastors, “It just seems as though there is a fundamental difference in interpretation between both sides which means that there should be a lawsuit to adjudicate the difference. I never tell people to go to court but this might be an instance where that is necessary.”

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Credit: Maksymowicz/Getty Images

The Journal Sentinel's report on the ongoing situation noted that the Common Council committee is currently tabling the issue for 60 days in hopes that the pastors and assessors' office can work through their problems, though litigation is still a very real possibility. 

What do you think about church property tax assessments in Milwaukee?

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Feature Image Credit: MattGush/Getty Images

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