San Francisco, Calif., Jun 10, 2009 / 00:25 am
A year-long conflict over whether the Archdiocese of San Francisco should face a tax bill of as much as $15 million for its property reorganization will soon come to a key moment in a June 16 appeals hearing.
The Archdiocese had moved 232 San Francisco properties from one Catholic non-profit organization to another. The properties included empty lots and commercial land but also famous churches such as Mission Dolores, Old St. Mary’s Cathedral and St. Francis of Assisi.
The city tax assessor has argued that this move was a transfer of assets to a separate entity, while the archdiocese said the action was simply an internal reorganization.
Nonprofits are exempt from property and federal income taxes but are subject to property transfer taxes. The decision in this case could affect hundreds of other non-profit groups.