A church tax is a tax imposed on members of some religious congregations in Austria, Denmark, Finland, Germany, Iceland, Italy, Sweden, some parts of Switzerland and several other countries.
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America
Attempts have been made to instate a church tax in America, all of which have proven to be unsuccessful. The majority of the debate regarding the legality of this law is centered around the wording of the First Amendment. These specific sections up for debate are the free exercise clause and establishment clause of the amendment. Due to the unclear wording, the laws around them remain heavily debated.
Walz v Tax Commission of the City of New York
This case was brought before the Supreme Court on November 19, 1969. Richmond County property owner Frederick Walz was concerned the tax exemption for churches led to his indirect contribution the church. The case argued whether or not the property tax laws and religious exemption from it were in violation of the First Amendment. The verdict was decided on May 4, 1970. In a 7-1 verdict, the Supreme Court determined that the tax exemption provided only: "minimal and remote involvement between church and state and far less than the taxation of churches." This majority opinion was written by Chief Justice Warren E. Burger. The dissenting opinion was written by Justice William O. Douglas. In his opinion, Justice Douglas states that: "If believers are entitled to public financial support, so are nonbelievers. A believer and nonbeliever under the present law are treated differently because of the articles of their faith... I conclude that this tax exemption is unconstitutional."
Trinity Lutheran Church of Columbia, Inc. v Comer
In 2017, this case was brought before the Supreme Court. The main issue at hand was whether excluding religious establishments from an "otherwise neutral and secular aid program" violates the First Amendment Free Exercise Clause and the Fourteenth Amendment Equal Protection Clause. The Trinity Lutheran Church sued the state of Missouri after they denied them a grant for materials to resurface their preschool playground. They were denied on the grounds of Missouri Constitution Article 1, Section 7. This states that: "no money shall ever be taken from the public treasury, directly or indirectly, in aid of any church, section or denomination of religion." In a 7-2 decision, the Supreme Court ruled that the exclusion of a religious group from a neutral and unbiased aid program violates the First Amendment. Chief Justice John G. Roberts, Jr. delivered the majority opinion. Justices Clarence Thomas, Neil Gorsuch and Stephen G. Breyer all wrote separate opinions concurring in part. Justice Sonia Sotomayor wrote the dissenting opinion shared by herself and Justice Ginsburg. In her opinion, Sotomayor stated that funding a grant to a religious institution provides for the spread of religious ideas and messages, and as such is a violation of the First Amendment's neutral treatment of all beliefs.
Maps Church tax
Austria
Every recognized religious group in Austria can collect church tax at a rate of 1.1%, though currently only the Catholic Church makes use of that opportunity. Church tax is compulsory for Catholics in Austria. This tax was introduced by Adolf Hitler in 1939. After World War II, the tax was retained in order to keep the Church independent of political powers.
Croatia
The Roman Catholic Church in Croatia receives significant state financial support and other benefits established in concordats between the Government and the Vatican. By the special agreement between Holy See and Republic of Croatia, Croatia is, through state budget, financing salaries and pensions of clergy, church sacral objects maintenance and restoration, building and running of church schools and universities.
Percentage-wise, about 0.46% of state budget ends up funding activities of the Roman Catholic Church in Croatia..
Denmark
The members of national Church of Denmark pay a church tax, which varies between municipalities, but can be as large as 1.51%. The tax is generally in the vicinity of 1% of the taxable income. The tax doesn't cover the entire budget of the church. An additional 13% is paid by the government. This means even people who are not members of the church finance the church through taxes.
Finland
All members of either the Evangelical Lutheran Church of Finland and the Finnish Orthodox Church (the two state churches of Finland) pay an income-based church tax of between 1% and 2%, depending on the municipality. On average the tax is about 1.4%.
Formerly, to stop paying church tax, one had to formally leave the church by personally going to local register office and waiting during an allowance of time for reflection. This requirement was removed in 2003 and currently a written (but not signed) statement to the church suffices. The majority of resignations since 2005 are now handled through a web site, Eroakirkosta.fi. If one is a member of the church when the year begins, he/she will pay taxes for the whole year; however, these are later returned as a tax refund. Studies show that church membership resignations in Finland are mainly due to the general secularization of society, not because of tax avoidance.
In addition to personal taxation, the state divides some of the money collected by taxing private companies to the two state churches. It does not matter if company is owned by church members or non-members. It has been argued that the churches use this money to upkeep cemeteries, to which they are obligated by law.
Germany
About 70% of church revenues come from church tax (Kirchensteuer), also called worship or cult tax (Kultussteuer) when referring to non-Christian religious bodies. This is about EUR9.2 billion (in 2010).
Article 137 of the Weimar Constitution of 1919 and article 140 of the German Basic Law of 1949 form the legal bases for this practice.
In Germany, on the basis of tax regulations passed by the religious communities and within the limits set by state laws, communities may either
- require the taxation authorities of the state to collect the fees from the members on the basis of income tax assessment (then, the authorities withhold a collection fee), or
- choose to collect the church tax themselves.
In the first case, membership in the religious community is stored in a database at the Federal Tax Office which employers receive excerpts of for the purpose of withholding tax on paid income. If an employee's data indicate membership in a tax-collecting religious community, the employer must withhold church tax prepayments from their income in addition to other tax prepayments. In connection with the final annual income tax assessment, the state revenue authorities also finally assess the church tax owed. In the case of self-employed persons or of unemployed taxpayers, state revenue authorities collect prepayments on the church tax together with prepayments on the income tax.
If, however, religious communities choose to collect church tax themselves, they may demand that the tax authorities reveal taxation data of their members to calculate the contributions and prepayments owed. In particular, some smaller communities (e.g. the Jewish Community of Berlin) choose to collect taxes themselves to save collection fees the government would charge otherwise.
Collection of church tax may be used to cover any church-related expenses such as funding institutions and foundations or paying ministers.
The church tax is only paid by members of the respective church. People who are not members of a church tax-collecting denomination do not have to pay it. Members of a religious community under public law may formally declare their wish to leave the community to state (not religious) authorities. The obligation to pay church taxes ends once such a declaration has been made. Some communities refuse to administer marriages and burials of (former) members who had declared to leave it.
The money flow of state and churches is distinct at all levels of the procedures. The church tax is not meant to be a way for the state to directly support churches, but since expenses for church tax are fully deductible (as are voluntary expenses for the Church, for charity or a bundle of other privileged aims) in fact such support occurs on a somewhat large scale. The effort of collecting itself, done by the State, is entirely paid for by the Churches with a part of the tax income.
The church tax is historically rooted in the pre-Christian Germanic custom where the chief of the tribe was directly responsible for the maintenance of priests and religious groups. During the Christianization of Western Europe, this custom was adopted by the Christian churches (Arian and Catholic) in the concept of "Eigenkirchen" (churches owned by the landlord) which stood in strong contrast to the central church organization of the Roman Catholic Church. Despite the resulting medieval conflict between emperor and pope, the concept of church maintenance by the ruler remained the accepted custom in most Western European countries. In Reformation times, the local princes in Germany became officially heads of the church in Protestant areas and were legally responsible for the maintenance of churches. Not until the 19th century were the finances of churches and state regulated to a point where the churches became financially independent. At this point the church tax was introduced to replace the state benefits the churches had obtained previously.
The church tax was reaffirmed in Article 13 of the Reichskonkordat between Nazi Germany and the Vatican, where it is understood that the right of the Church to levy taxes is guaranteed. Taxpayers, whether Roman Catholic, Protestant or members of other tax-collecting communities, pay an amount equal to between 8% (in Bavaria and Baden-Württemberg) and 9% (in the rest of the country) of their income tax to the church or other community to which they belong.
For example, a single person earning 50,000 euros may pay an average income-tax of 20%, thus 10,000 euros. The church tax is then an additional 8% (or 9%) of that 10,000 euros (800 or 900 euros) for a total of 10,800 or 10,900 euros in taxes.
In 2017, Germany's catholic church recorded approximately 6 billion euros split across its 27 different dioceses, also known as church districts. This is in spite of the massive dip in attendance. According to the national German newspaper Handelsblatt, church attendance has dropped by more than 2.2 million attendees since the start millennium. Contrasted to 50 years prior, where attendance totaled over 11 million, the numbers are now a mere 2.5 million Catholics The German Church also has a total fortune of at least 20 billion euros. The three highest profiting dioceses are Paderborn, at 3.5 billion, Munich at 2.8 billion, and Cologne at 2.6 billion euros. Despite the extreme success of this bill on forcing tax payment, many citizens still find ways to stay away from paying for it. When moving to Germany, one must fill out a form declaring religious affiliation and denomination. One can also manage to opt out of the tax at a later date, if they are a non-practicing member of their faith. This, however, has led to a lot of cases of people lying about their faiths in order to avoid paying taxes.
Iceland
Taxpayers in Iceland who belong to an officially registered religious group or secular humanist organization must pay a congregation tax (Icelandic: sóknargjald, plural sóknargjöld) which is deducted from income taxes and goes to the individual's respective organization. In the past, the sóknargjald of those who do not belong to any recognized religious organization went to the University of Iceland, but this was changed in 2009. In cases of individuals not belonging to a registered religious group or secular humanist organization, the amount that would otherwise be used for the sóknargjald remains now part of the income tax budget. In 2015, the monthly sóknargjald amounted to 824 Icelandic krónur.
The Church of Iceland receives governmental support beyond the congregation taxes paid by its members.
Italy
Taxpayers in Italy pay a mandatory eight per thousand tax, and have the option to choose to whom they will assign the monies. This tax amounts to 0.8% of the total income tax (IRPEF) and every taxpayer can choose the recipient of the contribution on their tax form. Regardless of whether the taxpayer expresses a preference or not, the 0.8% is already included in their tax levy.
Currently the choices are:
- Italian State
- Catholic Church
- Waldensian Evangelical Church
- Seventh-day Adventist Church
- Assemblies of God in Italy
- Union of the Jewish Communities in Italy
- Lutheran Evangelical Church in Italy
- Baptist Evangelical Christian Union of Italy
- Greek Orthodox Archdiocese of Italy
- Apostolic Church in Italy (Pentecostalism)
- Italian Buddhist Union
- Italian Hindu Union
If the choice is not expressly declared on the tax form, the tax is distributed according to the percentages of the taxpayers who have declared their choice of beneficiary. While it was intended that the state should use its own share of the 0.8% tax for social or cultural purposes, in practice it has employed it for general purposes including its military mission in Iraq in 2004 and the upgrading of prison infrastructure in 2011.
Sweden
The members of Church of Sweden pay church fee, which varies between municipalities, but can be as much as 2%. Church and state are separated as of 2000; however, the burial tax (begravningsavgift) is paid by everyone regardless of membership.
In a recent development, the Swedish government has agreed to continue collecting from individual taxpayers the annual payment that has always gone to the church. But now the fee will be an optional checkoff box on the tax return. The government will allocate the money collected to Catholic, Muslim, Jewish and other faiths as well as the Lutherans, with each taxpayer directing where his or her taxes should go.
Switzerland
There is no official state church in Switzerland. However, all the 26 cantons (states) financially support at least one of the three traditional denominations - Roman Catholic, Old Catholic (in Switzerland Christ Catholic), or Evangelical Reformed - with funds collected through taxation. Each canton church tax may formally have to leave the church. In some cantons private companies are unable to avoid payment of the church tax.
Ongoing Debate The argument for the exemption or inclusion of tax for churches is still debated to this day, both in countries with and without its current implementation. Some have gone so far as to call it treason to allow the government to exempt churches simply due to their religious affiliation. Others, such as the Supreme Court majority during the Walz trial, noted that "benevolent neutrality" towards churches was "deeply embedded in the fabric of our national life."
See also
- 501(c)(3) recognition - federal tax code exemptions for churches, similar religious entities, and other recognized non-profit groups in the United States.
- Clergy housing allowance - income not subject to federal tax that is paid to ordained ministers in both Canada and the United States.
- Otto per mille - Eight per thousand
- Peter's Pence
- Tithe
References
Source of article : Wikipedia
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