Evening star., 1949-12-04
The Week in Religion
By Religious News Service

There are indications that
American churches and church
supported institutions will have
to fight harder and harder to
maintain their tax-exempt status
State constitutions generally
absolve property owned by edu-
cational, religious and charitable
groups from the payment Of taxes
But in some areas faced with a
growing tax burden public officials
are eyeing non-profit groups with
a view to squeezing out additional
income If it can be had.
The scrutiny of the tax assessors
is being especially directed at
churches and other non-commer-
cial groups which have acquired
proflt-making properties without
incurring the tax liability OF or
dinary business enterprises.
Two Significant Signs.
Agitation against complete tax
exemption for religious and other
institutions goes on under the
surface, but it is becoming a grow
ing issue. Two significant signs
are the increasing number OF de-
mands being made on courts for
decisions on tax issues affecting
churches, and rulings by State
authorities conflning the area OF
tax exemption more and more
narrowly.
During November. for example.
the attorney general of Nebraska
ruled that in cases where a re-
ligious body owns church struc-
ture and rents it to another
church organization, the property
loses it's tax-exempt character.
The attorney general argued that
in this instance the character OF
the owner was beside the point
since a financial gain was made
In the transaction.
In a previous ruling. the same
attorney general told a rural
church which uses hired labor
to farm a 3o-acre tract that 1t
must pay taxes. His contention
was that any property owned by
religious, charitable or education
al groups but used for profit-mak-
ing is subject to assessment and
taxation.
In some instances. State legis-
latures have passed laws, or have
legislation pending. removing tax
exemption from church property
leased, rented or used to provide
revenue.
Ruling Made in Oregon.
The Oregon Supreme Court
handed down a ruling q few
months ago requiring the Meth
odist Book Concern, which sells
religious literature. to pay taxes
on its profits. Previously. the
Methodist. agency came under the
tax exemption granted by the
State charter to religious. char
table and scientific organizations.
In an editorial this week, the
Christian Century. influential un-
denominational weekly published
In Chicago, warned churches Of
"the mounting public resentment
against the increasing taxes which
ordinary citizens must pay be-
cause so much real estate and
such large amounts of business in
come and profits are tax exempt. :"
1T is about as sure as any
human reaction can be-" the week.
1y declared. that before long
there will be a national demand
that all forms of tax exemption
be subjected to scrutiny. and that
enough Of them be eliminated to
take some of this pyramiding tax
burden of the shoulders Of the
sweating citizen. The churches
had better be giving serious
thought to this prospect, for they
will be one of the most conspicuous
of tax-exempt targets, once the
drumfre of criticism starts"
College Investments Cited.
According to the Christian Gen.
tury, colleges, in particular, are
bringing this day of reckoning
closer" because more and more
of their funds are being invested
In common stocks, and many Of
them are acquiring entire corpo-
rations with a view to running on
the profits"
But, q report presented last
week to the Kentucky Associa-
ton of Church Related Colleges
warned that taxation Of private
colleges would seriously hurt their