In Nashua, N.H., published reports said the city collected about $50,000 from two closed Catholic churches in 2004. A lower court agreed with the Diocese of Manchester when it fought the assessment. But the state Supreme Court upheld the city\u2019s decision, saying warehousing religious artifacts does not rise to the level of \u201creligious purposes.\u201d\u009d<\/p>\n
Other states, including Michigan, Colorado, New York and Utah, have declined to question how much a building has to be used to qualify for an exemption, according to court records.<\/p>\n
New Jersey\u2019s tax laws, and the way they are interpreted, mean that waves of consolidations sweeping local churches and religious institutions won\u2019t bring much more revenue to local towns. State law exempts \u201call buildings actually used\u201d\u009d by religious institutions for both worship and charitable purposes. The law also allows these groups two buildings and up to five acres for use as a parsonage, or home for the officiating clergy.<\/p>\n
The key phrase in the law is \u201cactually used,\u201d\u009d said Lois H. Finifter, Atlantic County tax administrator, meaning it is used regularly. But she said the issue quickly becomes gray when challenged in court.<\/p>\n