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Church and Government Officials Clash on Taxation

January 2, 2008, 1:28 pm

The government is paying increasing attention to the financial activities of churches, as some state and local officials begin to demand tax payments from religious groups that run businesses that are not seen as having a charitable mission, reports The Wall Street Journal.

Large churches today may manage real estate portfolios, sports centers, or even shopping malls. To some critics, such practice seems a far cry from more traditional business activity like the rental of church parking lots.

John Witte Jr., director of the Center for the Study of Law and Religion, at Emory University, in Atlanta, says that the expanding investments of churches “forces both courts and agencies and tax commissioners to decide what’s a religious or charitable use.”

Church leaders, however, argue that these investments help them fulfill their charitable activities and aid their mission, and therefore should not be taxed.

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