The Parsonage Is Taxable Now: A Wisconsin Village Denies a Church’s Refund

• The Village of Prentice, Wisconsin, confirmed that First Baptist Church of Prentice’s parsonage no longer qualifies for property tax exemption.
• The village assessor removed the exemption, and the village attorney said this was allowed under Wisconsin statute 70.11(4).
• A motion to refund back taxes failed for lack of a second; a motion to deny refunds passed.
• The parsonage could qualify again if its circumstances change and it meets the statutory criteria.

A small Wisconsin church has lost the property tax exemption on its parsonage. The Price County Review reported that the Village of Prentice will not refund taxes on First Baptist Church of Prentice’s parsonage.

The village board of trustees took up the matter at its regular meeting on June 8. The village assessor had removed the parsonage’s exempt status, and the village attorney confirmed that this was permitted under Wisconsin statute 70.11, subsection (4), which governs exemptions for churches and nonprofits.

A motion to refund the back taxes failed when no one seconded it. A motion to deny tax refunds was then approved, with Trustee Doug Hagen opposed and Trustee Denae Walcisak abstaining. According to the report, Hagen said further review had given the board the option of refunding the taxes. The board noted that the parsonage could qualify for exemption again in future if its circumstances change and it meets the statutory criteria.

The report did not set out exactly why the parsonage no longer qualified. The decision means the church must pay tax on the house unless and until it qualifies again.

Parsonages and manses sit in a grey area for tax purposes in many places, because they are homes as well as church property. If a manse is empty, rented out or used by someone who is not a minister, its tax treatment may change. Jamaican churches with manses, mission houses or staff housing should check how each property is treated for property tax and keep evidence of how it is used. Treasurers should also budget for the possibility that a building which once paid nothing may start to attract a bill.

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