Catholic Church challenges tax ruling

Pub date December 3, 2009
SectionPolitics Blog

By Ryan Thomas Riddle
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The Catholic Church, which is exempt from paying property taxes, is feeling persecuted for having to pay property transfer taxes.

Not surprisingly, the Catholic Archdiocese of San Francisco is contesting the Dec. 4 ruling that holds it responsible for paying an estimated $14.4 million dollars in transfer taxes to the city, vowing to challenge the ruling in court.

In April 2008, the diocese had shuffled 232 properties from one church-held corporation to another. Archbishop George H. Niederauer argued that the property transfers were exempt from transfer taxes in a December 2007 statement. The Transfer Tax Review Board disagreed. The 3-0 ruling was a major victory for Assessor-Recorder Phil Ting whose office is calling this the “the second largest transfer tax event in our city’s history.”