Michigan church can’t be exempt from taxes on recreation property, appeals court rules
An appeals court has ruled that a multisite Evangelical church in Michigan cannot be exempt from paying taxes on a property meant to serve as a retreat and recreation space.
Woodside Bible Church filed a complaint against the Township of Forester over whether a property they purchased in 2016 along the banks of Lake Huron, which was known as “The Lodge,” should be taxed.
A three-judge panel of the Michigan Court of Appeals released a per curiam opinion on Monday that upheld an earlier judgment from a Tax Tribunal denying a property tax exemption.
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At issue was whether the use of the property was considered sufficiently religious, according to state law, to be qualified for a religious property tax exemption.
The opinion ruled that “while everything petitioner does may serve its mission, that does not necessarily mean that everything petitioner does constitutes holding a religious service or teaching others about its religious beliefs.”
“Here, the record evidence did not support petitioner’s claim that it used the subject property predominantly for religious services or the teaching of its religious beliefs, but rather overwhelmingly indicated that petitioner did not predominately use the property at all,” continued the panel opinion.
“The evidence submitted with the motions showed that the property was predominately used by third parties, not petitioner, and appeared to be predominately used for recreational and other nonreligious purposes.”
The appeals court noted that a brochure for the property “actually supported the tribunal’s conclusion that the property served as a primary place for recreation and retreat, because it reads much like [a] flier from a secular hotel or vacation venue, speaking of only retreats, recreation, rest, and escaping ‘the busyness’ of everyday life.”
“And, contrary to the assertion that the property was intended to serve petitioner’s purposes of teaching its religious beliefs, the pamphlet made clear that organizations renting The Lodge were responsible for planning the itineraries for the events they held,” the ruling added.
Woodside Bible was founded in 1955 in Troy, Michigan, with the congregation becoming a multisite church in 2005 when it merged with a declining church located in Warren.
In February, the church announced that it was donating the Lodge to Barnabas Ministries to further the stated mission of the property, which it said was “to equip pastors and their spouses, enrich marriages, and multiply leaders in the local church.”
“Both throughout this transition and afterwards, Woodside will continue to partner with Barnabas Ministries to attend to the growing needs of pastors and marriages within the church,” stated Woodside Bible.
“Please pray for all those who will continue to receive ministry through retreats at The Lodge, as well as those who will be newly impacted by this change. We’re confident that God will work through this transition to bless the lives of many at Woodside and beyond.”
