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Judge: Catholic lot in Madison must be taxed (September 4, 2016)

A Dane County, Wis., judge has ruled that the Catholic Church must pay taxes on a multimillion-dollar lot it owns in downtown Madison.

Dane County Circuit Court Judge Rhonda Lanford decided on Oct. 4 that a 1.3-acre lot in Madison owned by the Catholic Church is not exempt from property taxes. The Church sued the city last year to recover taxes it paid on the lot, which amount to nearly $100,000 per year.

FFRF filed an amicus curiae brief in June supporting the city of Madison. FFRF's brief questioned how St. Raphael's could retain an exemption while it was really just holding on to the lot as a future site of a $50 million cathedral.

"All Madison taxpayers should not have to pay more taxes while St. Raphael's invests in its other property holdings in Madison and holds the St. Raphael's lot for future development," FFRF Staff Attorney Patrick Elliott wrote. "It is precisely for this reason that property must be used to maintain an exemption."

The court granted summary judgment in favor of the city of Madison, holding that land that is tax exempt must be "necessary for the location and convenience of buildings" under Wisconsin law. Since there are no church buildings on the lot, it is taxable.