Renting church property to non-church groups or even to small businesses is increasingly common as churches try to address their budget challenges. Churches need to take care in describing the relationship with non-church users of church property and in calculating payable taxes into the rent charged in order not to fall into tax evasion. Local officials may circulate detailed assessment notices to all occupants of assessable properties, even those that are indirectly affected, or they may issue general summaries only to the actual owners of property. A municipality is likely to place church properties on the tax exempt list or to provide tax relief on general property taxes . It is least likely to do this on user fees .
Practice varies on specific levies.
Churches need to monitor local developments - especially as funds become more and more scarce. In some areas, municipalities routinely review their assessment roles and issue assessment notices to all ratepayers, including churches. A congregation that receives an assessment notice in a routine review usually needs to check with local officials to see whether or not it is still on the municipal list of exempt properties. Being exempt from property tax at some point does not necessarily mean a church will always be exempt from property taxes on buildings used for church-related business. The basis for taxing property is its use , not its ownership.