Tax exemptions claimed by some religious organizations raising questions 12 News Colleen Henry reveals the cost to taxpayers. Share Shares Copy Link Copy

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WEBVTT NOW, A 12 NEWS INVESTIGATION EXPOSES TAX EXEMPTIONS CLAIMED BY SOME RELIGIOUS ORGANIZATONS THAT RAISE QUESTIONS OF GOOD FAITH. COLLEEN HENRY REVEALS THE COST TO TAXPAYERS. 11:53:41 WELCOME TO MY ABODE 43 FOR FOUR MONTHS, HE WROTE RENT CHECKS TO A WOMAN HE KNEW AS A CO-WORKER... THAT'S FOR ONE MONTH, TWO MONTHS,13 HE ASKED US NOT TO IDENTIFY HIM - SINCE THE ARRANGEMENT ENDED IN AN UGLY EVICTION... THAT'S WHEN HE LOOKED UP THE PROPERTY RECORDS...AND WAS STUNNED TO LEARN WHO REALLY OWNED HIS DUPLEX. THIS IS NOT RIGHT, THE PROPERTY OWNER OF ASSESSMENT RECORD, CALVARY HILL TEMPLE APOSTOLIC FAITH CHURCH INC CALVARY HILL TEMPLE APOSTOLIC FAITH RENTS SPACE FROM ANOTHER CHURCH IN BROWN DEER. IT GOT TAX EXEMPT STATUS FOR THIS HOUSE FROM THE CITY OF MILWAUKEE. THAT MEANS IT PAYS NO PROPERTY TAXES. 12:58:23 COLLEEN: YOU DON'T PAY PROPERTY TAX ON THIS? PASTOR: BECAUSE I LIVE HERE 27 12 NEWS FOUND HIS CO- WORKER AT HOME IN THE LOWER LEVEL OF THE DUPLEX. JEANETTA PARKER-PERRY DRIVES FOR THE SAME BUS COMPANY AS HER TENANT, BUT SHE'S ALSO THE PASTOR AT CALVARY HILL TEMPLE APOSTOLIC FAITH CHURCH. SHE TOLD US SHE RENTED THE UPPER TO BE CHARITABLE. HE WAS LIVING IN A HOTEL.... THE MONEY GOES TO THE CHURCH.... STATE LAW DOES ALLOW CHURCHES TO AVOID PROPERTY TAXES ON THE HOMES WHERE THEIR PASTORS AND MINISTERS LIVE. 12:59:08 COLLEEN: IF YOU RENT THIS PLACE OUT, YOU HAVE TO PAY PROPERTY TAXES ON THE RENTED PORTION 12 PASTOR: THAT COMES IN MARCH, WHEN I GO BACK DOWN IN MARCH, I'LL LET THEM KNOW 18 12:32:49 HI WE'RE FROM CHANNEL 12... WE'RE LOOKING FOR WORD OF FAITH MINISTRIES. 52 THE CHURCH NEXT DOOR 54 12 NEWS FOUND ANOTHER CHURCH-OWNED TAX-EXEMPT PROPERTY, RENTED OUT. 12:34:55 THIS HOUSE IS STILL OWNED BY THE CHURCH? UMHMM 12 NEWS FOUND THE RENTER'S DAUGHTER AT HOME. 12:35:02 SHE DOESN'T WORK FOR THE CHURCH? NO...SHE JUST PAYS RENT TO THE CHURCH - TO THE PASTOR HIMSELF 08 SHE SAYS THE RENT IS $700. 12:46:16 HI ARE YOU PASTOR WALKER, YES. 17 12 NEWS FOUND THE PASTOR AT HIS CHURCH NEXT DOOR. 12:46:22 I UNDERSTAND YOU'RE RENTING THAT HOUSE. 25 THE PASTOR SHOWED 12 NEWS HIS TAX EXEMPT APPLICATION...AND OFFERED AN EXPLANATION THE CITY SAYS IS WRONG. 12:48:44 SO LONG AS WE USE PART OF THE INCOME FOR REHAB OF THE PROPERTY..THEN IT'S NOT TAXABLE 51 9:46:54 IT DOESN'T MATTER HOW YOU USE THE RENT, THE FACT IS IT'S NOT BEING USED FOR AN EXEMPT PURPOSE 58 STAND UP MILWAUKEE'S ASSESSOR SAYS CHURCHES DON'T HAVE TO PAY TAXES ON HOMES WHERE THEIR ORDAINED MINISTERS LIVE...OR WHERE THEY DO OUTREACH. BUT THEY CAN'T COLLECT RENT IF THEY'RE TAKING THE TAX BREAK...THOUGH THERE IS NO ONE IN CHARGE OF POLICING THEM. 9:47:48 SO THIS IS BASICALLY THE HONOR SYSTEM? WELL IT'S A LITTLE BIT OF THE HONOR SYSTEM I GUESS 54 9:47:57 WE DO FIND OUT, WE HAVE APPRAISERS OUT IN THE FIELD AND THEY NOTICE THINGS WE CHECK OUT, WE HAVE PEOPLE WHO CALL IN AND ASK ABOUT CERTAIN EXEMPTIONS AND WE'LL CHECK THOSE OUT 08 REAVEY SAY EVERY TAX DOLLAR LOST TO THE RELIGIOUS EXEMPTION IS AN EXTRA DOLLAR PAID BY TAXPAYERS...AND THE COST IS STUNNING... FULLY 25% OF MILWAUKEE'S ASSESSED PROPERTY FALLS UNDER THE RELIGIOUS EXEMPTION - INCLUDING NEARLY 100 MISCELLANEOUS TAX-EXEMPT RELIGIOUS PROPERTIES ACROSS MILWAUKEE. 9:38:58 WE HAVE AT LEAST $5.5 BILLION IN NON-GOVERNMENTAL EXEMPTIONS 01 THAT INCLUDES NON PROFITS, CHURCHES, AND RELIGIOUSLY- AFFILIATED HOSPITALS. SHE BELIEVES MOST CHURCHES FOLLOW THE RULES. MARY REAVEY - 9:49:36 I DON'T THINK THERE'S A LOT, BUT ARE THERE A FEW EXAMPLES, I WOULD SAY IT PROBABLY IS SIMILAR TO SOMEONE WHO HAS A BASEMENT REC ROOM THEY HAVEN'T TAKEN A PERMIT OUT FOR 47 9:49:02 IT'S THE PRINCIPAL OF THE THING,04 IF YOU'RE NOT EXEMPT, THEN YOU SHOULD BE PAYING YOUR FAIR SHARE LIKE EVERYBODY ELSE 08

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