On January 14, 2025 FFRF and three Madison, WI residents filed a lawsuit challenging a tax law that exempts two rental properties owned by religious entities from paying property taxes.The law in question was specifically created to benefit the church-owned properties The Pres House and Lumen House Apartments in Madison, WI. The plaintiffs in this lawsuit are FFRF co-presidents Annie Laurie Gaylor and Dan Barker, taxpayer David Peterson, and FFRF itself.
This tax exemption started in 2009 when the Wisconsin Legislature enacted a property tax exemption to benefit the Pres House Apartments, owned by the Presbyterian Student Center Foundation. Then, in 2013, the Legislature approved an amendment to benefit the Lumen House Apartments, owned by the St. Raphael’s Congregation within the Diocese of Madison. Both of these are designed for student renters and are extremely profitable properties. The Pres House Apartments’ current market value likely exceeds $25 million, with estimated property taxes owed in excess of $300,000 annually. Lumen House Apartments’ current market value likely exceeds $7.6 million, with estimated property taxes exceeding $94,000 annually.
The plaintiffs and Madison residents are forced to pay higher taxes to make up for the omission of these properties from the tax rolls. Further, it harms plaintiff FFRF, since it favors rental properties owned by two religious nonprofit organizations to the exclusion of all other nonprofits that may desire to run student apartments in the future.
FFRF’s lawsuit argues that the exemption is unlawful under the Wisconsin Constitution on several counts. The exemption violates the Uniformity Clause, the Equal Protection Clause, and the Establishment Clause of the Wisconsin Constitution. The exemption also is unconstitutional as it was approved via a private bill by the legislature.The plaintiffs seek a declaratory judgment striking down the exemption.
Plaintiffs are represented by FFRF Staff Attorney Sammi Lawrence, Legal Director Patrick Elliott, and Pines Bach attorney Christa Westerberg in Madison, WI.
