Athol Daily News – Orange to charge church $13.7K after unfair treatment complaint

ORANGE — After receiving a letter in March informing them of a complaint alleging special treatment of Mission Covenant Church, Selectboard members, working with assessors, decided to charge the church $13,723.54 $ for taxes.

Americans United for Separation of Church and State, an organization dedicated to ensuring political distance between religious institutions and government, sent a letter to Town Administrator Matthew Fortier and the Selectboard on July 13 March to explain that a resident reported that the city had for several years been leasing the property at 62 Cheney Street to the church. Orange uses the church full-time for government business under a rental agreement, but tax records indicate the church still claims a property tax exemption on the grounds that the building is used for religious purposes .

In its letter, the Washington, D.C.-based organization estimates unpaid taxes over the time the city has used the building at approximately $57,000. However, at a selection committee meeting Monday morning, Fortier said assessors determined the church could not qualify for a full tax exemption because the property is rented.

Assessors, according to Fortier, determined that the final tax exemption is 75 percent for the church. Additionally, the assessors’ interpretation of the Massachusetts General Laws indicates that the “lookback period” is only one year, meaning that Orange can only collect church taxes for the year tax elapsed. Based on these considerations, the assessors intend to notify the tax collector on June 20 to bill the church in the amount of $13,723.54.

Council members also worked Monday to draft a response to the March 13 letter.

The original letter from Americans United for Separation of Church and State explained that giving special treatment to a religious organization, such as allowing it a religious exemption on a building that is not not used for religious purposes, violates the Establishment Clause of the First Amendment to the U.S. Constitution.

In response to the organization’s first claim that the church is seeking a property tax exemption based on the building being used for religious purposes, the Selectboard’s letter states: “Our response to the first claim is to ask the board of Orange City Assessors to research this matter and consult with the State Department of Revenue regarding whether or not the property qualifies for tax-exempt status when renting from space to the city.

The Selectboard, in its letter, also sought to address concerns that the town might use taxpayer funding for “unnecessary renovations for the purpose of enriching a religious institution.”

According to Fortier, the improvements and renovations made to the building at 62 Cheney Street do not include projects with timelines extending beyond the end of Orange’s lease, which was a concern for Americans United for the Separation of the Church and the State.

Some improvements were made to the building by Orange and the church. While the church made personal improvements to the property, the work done by the city had to be done in accordance with state building codes, according to Orange’s response letter. Any improvements to the building financed by Orange were reimbursed with the previous and future rent credit that Orange owes under its lease.

The bill for $13,723.54 will be sent by the tax collector on July 1 and the church will have 30 days to respond after receipt. The city is trying to find a way to extend the 30-day grace period to give the church a longer payment window or an alternative payment plan, if possible.

The Selectboard also addressed Americans United for Separation of Church and State’s latest concern that the city favors the Church, reassuring the organization that this is not the case.

“What the City of Orange can offer is to seek and continue to ensure that Mission Covenant Church is treated the same as any other taxpayer, and adjust the tax status of the Cheney Street property appropriately, if the assessors and the State deem it necessary. DOR,” the response letter read. “Additionally, we will ensure that any future renovations to the building, which are not necessary for the government’s use of the building, are distributed equitably between the city and the church based on the remaining term of the lease, as you suggest and indicate. in the letter.

Response to Americans United 06/17/2024 by Shelby Ashline on Scribd