The Freedom From Religion Foundation hailed a ruling today that allows its hometown case against unconstitutional church property tax exemptions to move forward.
This is the second time a Dane County judge has ruled that FFRF and its three Madison residents may proceed in the lawsuit challenging an unconstitutional state property tax exemption unduly benefiting commercial rental properties owned by two local religious organizations.
The property tax exemption was created and later amended to benefit specific church-owned rental properties to the tune of hundreds of thousands of dollars annually. The Pres House and Lumen House Apartments, both serving primarily student renters and owned by two of the defendants, are explicitly exempted from paying their share of taxes. Removing these large, extremely profitable rental properties from the tax rolls forces other property taxpayers to make up the difference.
A judge in February denied an earlier round of motions asking the court to toss out the case. The defendants filed a second round of motions seeking dismissal, which the court has once again denied.
“Plaintiffs’ action is not time-barred,” Judge Stephen Ehlke said in his order.
“We are pleased to finally move forward with this case,” says FFRF Legal Director Patrick Elliott. “This suit serves all taxpayers in Madison and ensures that the Wisconsin Legislature is not allowed to favor specific churches for special tax benefits.”
FFRF and its three local plaintiff property owners contend that the tax exemption is unconstitutional under the Wisconsin Constitution for several reasons. The exemption undeniably harms all property taxpayers in Madison, including plaintiffs Annie Laurie Gaylor and Dan Barker (who serve as FFRF co-presidents) and local resident David Peterson, by forcing them and all other Madison property taxpayers to pay higher property taxes to make up for the unlawful omission of these properties from the tax rolls. The exemption also harms plaintiff FFRF by favoring rental properties owned by two religious organizations to the exclusion of all other nonprofits that may desire to run commercial student apartments in the future.
The Pres House Apartments’ current market value likely exceeds $25 million, with estimated property taxes owed in excess of $300,000 annually. The current market value of Lumen House Apartments likely exceeds $7.6 million, with estimated property taxes exceeding $94,000 annually.
The Freedom From Religion Foundation is a national 501(c)3 nonprofit headquartered in Madison working as an umbrella for those who are free from religion and are committed to the cherished principle of separation of state and church. It currently has nearly 41,000 members nationwide, including 1,600 members in Wisconsin.
