Churches: Rendering unto Caesar

Federal and state laws have traditionally exempted church property from taxation. But now that the value of church possessions has grown to some $80 billion, professional secularists such as Atheist Madalyn Murray O'Hair have raised far-reaching court suits challenging these exemptions, and financially hard-pressed local governments have begun to nibble away at the limits of the churches' immunity. As a result, U.S. churches are today in the midst of an agonizing reappraisal of their traditional privileges.

Last month, for example, the Episcopal diocese of New York appointed a blue-ribbon panel of lawyers to determine whether the church should pay taxes on its property. Similar investigations have been undertaken in recent years by the Baptists, the American Lutheran Church, the United Presbyterian Church and the National Council of Churches. By and large, the studies have ended in demands for more study—largely because the clergymen themselves are bitterly divided about whether they should pay any taxes, and on what property.

To Tax Is to Destroy. Strongest opposition to any taxation comes from the Roman Catholic Church, which takes the position that the power to tax is the power to destroy. Attorney William Ball, who has defended Pennsylvania's eight Catholic dioceses in law suits challenging their tax privileges, argues that the church more than makes up for taxes it would otherwise pay in social services it performs. Pennsylvania's parochial schools, for example, provide education for one-fourth of the state's students, and together with Catholic charitable ventures are saving its government more than $250 million a year.

Protestant opinion is considerably more divided. Some churchmen, like Methodist Bishop Richard Raines of Indianapolis, believe that all property should be subject to some form of taxation. Dr. A. Dale Fiers, executive secretary of the Disciples of Christ, favors taxing income-producing church property, but wants the rest exempted on the ground that otherwise the church's capacity for social good would be severely hampered. Dr. Franklin Clark Fry, president of the Lutheran Church in America, favors continuing traditional exemptions, but believes that parishes should make voluntary contributions to their communities in lieu of taxes, for such services as fire and police protection.

Token Payments. As it happens, some churches have agreeably worked out such informal arrangements. The Unitarian Church of Montclair, N.J., recently handed town officials a check for $1,000 in token payment for services rendered. In Boston the Christian Scientists pay city taxes on all their properties except the Mother Church itself. In sum, the churches seem ready to render unto Caesar at least a little of his due—lest Caesar ask for even more.