Legal Question in Tax Law in Michigan

separation of church and state.

Is there any law that prohibits the establishment of a church organization that pays taxes. We have not requested a tax exempt status from the IRS, by choice, but the primary function of the church is to promote our religious beliefs in the sanctitee of the family by holding weddings at our chapel and to have religious meetings every week. Would it then be descriminatory for local and state goverments to deny zoning and or other priveledges allowed other churches when we meet their criteria but we choose to pay our taxes?


Asked on 6/06/99, 1:09 pm

2 Answers from Attorneys

Stephen Carpenter Carpenter Law Office, P.C.

Re: separation of church and state.

If you really wish to pay income taxes, a church can voluntarily lose its otherwise "automatic" exempt status by engaging in a prohibited act (such as unequivocable political campaigning for a specific candidate). That would make you taxable.

As to zoning, etc. I would imagine that your church charter and other organizational documents may be the primary focus in satisfying the definitions of a zoning ordinace. In short, the answer depends on your local government's definition of "church" rather than the IRS definition. I have seen instances where the ordinance specifically includes "tax exempt" status as part of the definition and that would be a problem for you.

Please respond to me directly at [email protected] so we can discuss WHY you want to forego tax exemption. I deal with a lot of churches and, while most don't care, none are eager to pay tax. I would be interested in your thoughts.

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Answered on 6/09/99, 4:39 pm
MYRON LEWIS MYRON LEWIS

Re: separation of church and state.

Why don't you apply for tax-exempt status with the IRS? You have nothing to lose..and much to gain! Pls. consider it....

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Answered on 6/29/99, 1:05 pm


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