An Atlanta church recently found out it’s set to be auctioned off by creditors thanks to unpaid property taxes — which the administrators were never aware they had to pay.
As a registered nonprofit, Solid Rock Christian Ministries for years had been exempt from paying property taxes. That status appears to have changed in 2017 — unbeknownst to the church administration — and the organization’s debt had been piling up.
“We had no clue that we were even getting notifications,” Pastor Jahmaul Williams told WSB-TV. “We had been considered tax exempt.”
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More than 45 years ago, Williams’ grandmother had donated her northwest Atlanta house to become the church. But Williams says the church didn’t even realize tax bills were coming in since they were being mailed to a former pastor — who died in 1996.
Administrators became aware they owed back taxes when a groundskeeper noticed a piece of paper tucked under the doormat at the church’s front entrance. As it turns out, Fulton County had sold the tax debt to collection agency Investa Services, which is now pushing to foreclose in August unless the church pays $67,000 in tax debt, interest and fees.
“We have been notified that they are going to try to sell our property on the courthouse steps,” Williams said.
What happened
A county official reportedly told state Sen. Donzella James they revoked the church’s property tax exemption because its title included a person’s name (even though it always has).
The owner is recorded as “Johnson Carrie Admr Church,” named after the church’s first pastor, Carrie Johnson, who died in 1989.
“I cannot understand how a church that is active and functioning in the community could be changed from nonprofit to profit,” James told WSB-TV.
“It’s a lot of people dropping balls here. And now we need to stop this and give them an opportunity to satisfy, rather than have their property sold on the courthouse steps.”
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What's going to happen next?
The Pro Bono Partnership of Atlanta says “all property owned by and operated exclusively as a church or other religious association” is exempt from property taxes.
However, the National Council of Nonprofits notes most state laws require nonprofit corporations to periodically confirm or update their basic contact information, like their mailing address and the names of responsible parties.
WSB-TV reports that under Georgia law, third-party lien holders must notify you within 60 days of assuming your debt and can charge you a one-time 10% penalty, with 1% interest accruing each month.
They must also wait 12 months before foreclosure.
The church has apparently hired a lawyer and is hoping to fix the title issue.
“We should not be taxed,” Williams said. “We are a church. We’ve been known to be a ministry.”
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Serah Louis is a reporter with Moneywise.com. She enjoys tackling topical personal finance issues for young people and women and covering the latest in financial news.
