An atheist legal organization has filed a complaint against a Wisconsin city, a student ministry, and a parish over a religious tax exemption law that benefits two church-owned rental properties.
The Freedom From Religion Foundation and three residents of Madison filed a lawsuit last Tuesday in Dane County Circuit Court, with the plaintiffs taking issue with a property tax exemption that benefits religious nonprofits, but not other entities.
Defendants named in the suit include the city of Madison, the Presbyterian Student Center Foundation, and St. Raphael’s Congregation, which operates Lumen House Apartments.
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“For over a decade, [plaintiffs] have been paying higher property taxes, along with all other Madison property taxpayers, in part to make up for the unconstitutional omission of these properties from the City’s tax rolls,” reads the complaint, in part.
“Further, the Exemption was created and later amended to unlawfully favor two religious organizations to the exclusion of all other religious or non-religious organizations, including plaintiff FFRF.”
The lawsuit also alleges that the exemption for the two properties violates Article I, Section 18 of the Wisconsin Constitution, which states in part that no “preference” can “be given by law to any religious establishments or modes of worship.”
The Christian Post reached out to Madison city officials, and a spokesperson replied that they have “not been served with this lawsuit yet, so we do not have a comment on it.”
The Rev. Erica Liu, executive director of the Pres House, provided CP with an emailed statement in which she said that state lawmakers “enacted the property tax exemption statute at issue through conventional, appropriate and lawful means.”
“The constitutionality of the exemption has been repeatedly affirmed and supported over 15 years by city and state leaders from both parties,” she added.
“Pres House applied and qualified for the exemption as required by law. The city of Madison properly granted the request. Additionally, Pres House makes a completely voluntary payment in lieu of taxes to the city of Madison to support city services each year.”
Liu noted that the “legislature and defendant parties each believe the exemption is constitutional, and the allegations which contend the exemption has improper or unlawful origins are inappropriate and highly disputed. Pres House looks forward to the opportunity to be heard in court.”
In 2009, a state representative introduced a measure in the Wisconsin Legislature exempting the Pres House Apartments — which is owned by the PSCF — from paying property taxes.
Although the Joint Finance Committee repealed the exemption in 2011, former Gov. Scott Walker vetoed the request, according to the Milwaukee-based outlet The Daily Reporter.
In 2013, state lawmakers approved an amendment removing Lumen House from the property tax roll preventing other properties from qualifying for that specific property tax exemption.
FFRF had attempted in 2011 to strike down 26 U.S. Code § 107(2), a law passed in 1954 that granted a tax exemption on clergy housing allowance. The group argued that the measure gave “preferential treatment” to religious entities.
In June 2019, after an appeals court ruled against FFRF, the atheist legal group announced it was ending its lawsuit against the housing allowance measure.
