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Author Topic: Lets start taxing churches [Locked]
ZigmundZag  4 stars
Title: Grammar Nazi
Posts: 1,211
Registered: 2002-3-25 23:03:00
Ashmaele posted:

Do church-run bookstores have to remit sales tax to the state on sales they make? I honestly do not know.

If it's a business I would think so. If it was one of those things where they tagged items at "suggested donation" values maybe not, but I could see state revenue offices getting wise to that pretty quickly.

 

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Lyken-P  2 stars
Posts: 453
Registered: 2006-1-14 18:41:19
Ashmaele posted:

Do church-run bookstores have to remit sales tax to the state on sales they make? I honestly do not know.

Frequently churches operate bookstores. Bookstore operations, under normal circumstances, do not create UBI (Unrelated business income). In examining a church bookstore, the IRS determines UBI by an item-by-item analysis of the items sold. If all the items sold relate to exempt purposes, such as promoting the gospel, then the sale of those items does not create UBI. If the bookstore sells gift items or breath mints that are not related to an exempt purpose, then the sale of these items creates UBI unless one of the exceptions to UBI applies. If the bookstore is operated solely around service times, the bookstore operation will not generate UBI because it is operated solely for the convenience of its members. Also, if volunteers operate the bookstore, the substantially all-volunteer exception will apply and sales from the bookstore will not generate UBI.
....
Closely associated with UBI is sales tax. In many states, the sale of merchandise creates a taxable event requiring the church to collect sales tax on the transaction, even though the church is exempt from paying sales taxes on its purchases. In most states, churches are required to collect sales tax from their bookstore sales. The church should check with its local sales tax office to determine its responsibilities regarding sales taxes.

If you want to read the whole thing: http://enrichmentjournal.ag.org/201002/201002_028_Render_Caesar.cfm
Ashmaele  4 stars
Title: Pastor of Muppets
Posts: 1,809
Registered: 2002-1-15 08:30:50
Lyken-P posted:

Ashmaele posted:

Do church-run bookstores have to remit sales tax to the state on sales they make? I honestly do not know.

Frequently churches operate bookstores. Bookstore operations, under normal circumstances, do not create UBI (Unrelated business income). In examining a church bookstore, the IRS determines UBI by an item-by-item analysis of the items sold. If all the items sold relate to exempt purposes, such as promoting the gospel, then the sale of those items does not create UBI. If the bookstore sells gift items or breath mints that are not related to an exempt purpose, then the sale of these items creates UBI unless one of the exceptions to UBI applies. If the bookstore is operated solely around service times, the bookstore operation will not generate UBI because it is operated solely for the convenience of its members. Also, if volunteers operate the bookstore, the substantially all-volunteer exception will apply and sales from the bookstore will not generate UBI.



That's the IRS, but we don't pay sales tax to the IRS. That is collected and remitted on the state level.

Of course the law could be different in different states. I guess I could look up FL myself.

 

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Bonzoboy1  3 stars
Posts: 885
Registered: 2008-8-1 18:04:29
My wifes church runs a low cost day care for low income families that is subsidized by the church members, is that the sort of thing you want to tax?

 

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Yukishiro1  4 stars
Posts: 3,243
Registered: 2002-9-20 23:52:57
"Spreading the gospel" should not count as tax exempt charity.
Kjarhall  3 stars
Title: The Pungent One
Posts: 915
Registered: 2002-3-1 15:47:21
I'm sure by looking at their balance sheets we could find a way to tax them without hurting the small churches.

Such as - money that goes directly towards true charity is exempt. Repairs on buildings and grounds are exempt, expansion is not. Expenditures for clergy are not, over whatever the average COL is, etc.

 

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ZigmundZag  4 stars
Title: Grammar Nazi
Posts: 1,211
Registered: 2002-3-25 23:03:00
I have no issues with churches being tax exempt, but I do think as a counterpoint that churches should not be involved in political campaigns. This seems to be happening less and less these days.

 

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Abaddon_Ambrosius  4 stars
Title: Retired Theurgist TL
Posts: 1,674
Registered: 2001-12-21 09:51:39
GOD WILLS IT!

 

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Lyken-P  2 stars
Posts: 453
Registered: 2006-1-14 18:41:19
ZigmundZag posted:

I have no issues with churches being tax exempt, but I do think as a counterpoint that churches should not be involved in political campaigns. This seems to be happening less and less these days.

And Non-Profits don't get involved?
Z-Elder  3 stars
Posts: 671
Registered: 2002-3-15 13:58:39
All mega churches making over $500,000 shouldn't be taxed because I am sure they are creating jobs in the communities. If they are making less than $75,000 tax the hell out of them! They are obviously doing it wrong so their people would be better off moving into the larger churches.

 

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