By Ryan Thomas Riddle
A decision is expected next month in the high-stakes battle
between the Archdiocese of San Francisco and Assessor-Record Phil Ting, which will determine whether the church will pay out millions in transfer taxes.
On Thursday, Oct. 8, Ting once again went before the Transfer Tax Review Board to counter the Archdiocese’s
assertions that its extensive 2008 property transfers aren’t taxable. The board then called for final legal documentation in the case, including closing briefs, to be delivered by both sides on Nov. 9. The board will render its final ruling two weeks later, according to Ting.
“It is in the capable hands of the tax review board,” he told the Guardian.
Ting said he expects that the verdict will be in his office’s favor, which could force the Catholic Church to pay somewhere between $3 million and $15 million in transfer taxes to the city. Church officials, who have yet to respond to our calls, contend that the properties the archdiocese moved from one interdenominational entity to another are considered a “gift” under canon law, and thus do not qualify for transfer taxation since the properties still belong to the greater Catholic Church.
The Assessor’s Office reviewed a January 2009 California Supreme Court ruling that reaffirmed the national Episcopal Church’s ownership of local church buildings and properties, a case the archdiocese has cited. “Basically, it’s an interdenominational conflict that has no barring on this case,” Ting said.
As for accusations from the more militant church supporters that this is the city’s retaliation for the passing of Proposition 8
, Ting said that his office made overtures on the transfer taxes long before the same-sex marriage issue went to the election ballot. Craig Dziedzic, manager of the recording division within the Assessor’s Office who testified in Thursday’s hearing, sent emails out to the legal counsel for the diocese regarding the transfer taxes back in April 2008, months before Prop 8 was passed.