The hashtag #TaxtheParsonages may not be as catchy as #TaxtheChurches. But it, too, might start trending, thanks to an investigation by the Houston Chronicle. As part of its deep dive into tax sanctuaries, the newspaper found that vague wording and lax enforcement often mean that tax breaks for religious residences, or “parsonages,” are abused. That, in turn, shifts the tax burden to other residents and often leaves public schools and other governmental services shortchanged.
Although most U.S. states offer some form of tax exemptions for clergy housing, standards and limits often are in place. In Texas, however, the application is brief, appraisers are often overworked, and religious organizations hold significant clout.
What the Houston Chronicle Found About Texas Parsonages
By combing through property records and contacting county officials, reporters pinpointed 2,683 parsonages in Texas valued at about $1 billion that receive tax exemptions of $16 million per year. (Not all counties responded.)
Although the state has a one-acre limit on parsonages that can qualify for tax exemption, the paper found more than 30 that exceeded that land size. Texas doesn’t place a dollar limit on the exemption amount for a clergy residence, but at least 28 of the homes are worth $1 million or more.
The state tax code also doesn’t say how many tax-exempt parsonages a single religious organization may have. For example, Highland Park Presbyterian Church in Dallas has 11 clergy residences worth an estimated $15 million. And until a 2019 lawsuit was settled, Gospel for Asia had more than 80 single-family tax-exempt parsonages.
County appraisers say they have heavy workloads, old equipment, and, frankly, higher priorities. Plus, they admit that pursuing back (or future) taxes from religious organizations is unpopular in Texas. Don Bobbitt, chief appraiser for McLennan County, says challenging churches is “not a great way to operate, especially in this state. It’s not a fight you want to pick.”
Justification for Tax-Exempt Parsonages
Advocates of tax-exempt parsonages say the break helps compensate for the lower-than-average earnings of most clergy. Plus, it frees up churches to conduct more community outreach and provide more charity services, relieving some workload of local governments.
But critics say churches already get more than their share of financial breaks. And some lavish estates for Texas clergy don’t exactly mesh with organizational teachings about austerity. In San Antonio, a Capuchin mission owns an 8,400-square-foot gated building that houses seminarians. Valued at $1.43 million, the property is exempt from yearly taxes of about $36,500. Brother Mark Schenk tells the Houston Chronicle, “We have to live somewhere,” adding that individuals, not the institution, take vows of poverty.
