walrus51

This property – a 50-unit vacation destination – was acquired by the Church of Scientology FLAG Service Organization in 1996.  Although it is currently assessed for $2.3 Million, it has been off the tax rolls since 2013. That’s right. This 50-unit waterfront motel is tax exempt for religious purposes.

The property is now gated and clearly not accessible to the public, yet it appears to be well-maintained and suitable for its intended use as temporary housing for travelers.

In a post from November 2020, Mike Rinder looked deeply into the concept of awarding tax exemption to the Church of Scientology (Scientology’s Tax Exemption (mikerindersblog.org)

I am resident, voter, property owner and taxpayer in Clearwater, FL where the Church of Scientology has directly and indirectly acquired hundreds of properties, taking many off the tax rolls thus shifting the tax burden to others.

I don’t wish to debate the validity of the religious exemption Scientology won from the IRS, yet I do want to debate the practice of hiring and using an army of lawyers to fight property assessors who attempt to determine that some of the properties owned by Scientology are not used for religious or charitable purposes, and thus not eligible for property tax exemptions.

I also question many of the activities of Scientology which seem to confer ‘excess benefits’ to Chairman Miscavige and others who occupy senior positions in the Organization.

Having received tax exemption from the IRS as a religious organization, the Church of Scientology and its many affiliates are also exempt from filing an annual Form 990 “Information Return” with the IRS:

‘They are encouraged to file, but not required to file.’

The 990 provides a treasure trove of information, including executive compensation, benefits, governance, etc.

If I was a gangster posing as a religious leader, I would want to be exempt from any public disclosure, including the requirement to file a 990.

If I was an honest, fair, selfless religious leader I would hope to be fairly compensated for my education, wisdom and service so that I had adequate shelter, nutrition and safety for me and my household, but I wouldn’t object to disclosing the financial affairs of my organization, which would include disclosure of my personal compensation and benefits.

This goes well beyond Scientology as there are more than a few Exempt Religious Organizations which opt into the nondisclosure arena.

Despite that loophole, a rather large number of religious organizations which have received tax exemption from the IRS continue to file their 990 forms every year.

This seems to be another serious, dangerous and egregious loophole in our Federal Tax Code that needs to be addressed.

We, The People, ought to know what is going on behind the curtain, particularly because we are left paying the piper when those few tax-exempt organizations every year stray from the garden path.