$4.4-Million Cost Cited in Tax Break for Clergy

SACRAMENTO — Los Angeles County Tax Assessor John J. Lynch contended Tuesday that a proposed property tax change to exempt homes used by priests, ministers and rabbis would cost the county $4 million annually in lost revenue and require $400,000 to administer.

Lynch, who joined assessors from around the state in arguing against the proposal before the state Board of Equalization, complained that the measure could “lead to untold abuses” by giving free rides on property taxes to “mail order” ministers and others who set up their own churches.

Approval Predicted

The proposal was drafted by Board of Equalization member Conway H. Collis of Los Angeles, who said the costs would be minimal. He said the measure would simply extend tax exemptions already provided to churches to the homes where ministers or church leaders live.

Despite the opposition, Collis predicted the five-member Board of Equalization ultimately would approve the measure, perhaps next month.

Under the proposal, only churches certified as organized religions by state and federal taxing agencies would receive the tax break. It would also apply only to residences used by full-time religious leaders. Collis also said he would amend the measure to assure that the clergy receiving the tax breaks live reasonably close to the churches.

The measure was introduced at the request of the Roman Catholic Church, but it also is supported by several Protestant church leaders.

Father William J. Wood, executive director of the California Catholic Conference, said he did not believe the proposal would lead to widespread losses of revenue by governments.

Savings Cited

“I think their fears are unfounded,” Wood said, describing the revenue loss to counties as “a drop in the bucket.” But he said savings to local churches would be substantial, estimating that Roman Catholic parishes in Los Angeles County alone would save $750,000 to $850,000 in property taxes a year.

Wood also said that the measure was worded so that it would not apply to mail order ministers.

Lynch told reporters before the hearing that the proposal would make tax breaks available to anyone who claimed to be a religious leader. “In this country, anyone can set themselves up as any religious denomination and who is to say what constitutes or does not constitute a religious belief?” he said.

Lynch said it is impossible to write the tax law to apply only to major Protestant and Roman Catholic religions. “You cannot put in an exemption or benefit that would benefit only a small group within a group,” he said.