The Freedom From Religion Foundation (FFRF) and three Madison residents filed a lawsuit on Jan. 14 to strip the religious tax exemptions of two student housing centers, naming the city of Madison, the Presbyterian Student Center Foundation and St. Raphael’s Congregation as defendants.
The Presbyterian Student Center Foundation — one defendant in the lawsuit — operates the Pres House Apartments on East Campus Mall. St. Raphael's Congregation, the other student housing defendant, operates the Lumen House Apartments on Johnson Street.
The FFRF is challenging the constitutionality of the two groups' student housing property tax exemption status under Wisconsin law, arguing that the tax exemption status infringes on four sections of the Wisconsin Constitution. These sections specifically require equal taxation and forbid preferences for religious institutions, arbitrary classifications and private bills that benefit specific entities.
The Pres House issue stems from a property tax exemption passed by the Wisconsin Legislature in 2009, according to a press release from the FFRF. In 2011, when the Legislature’s budget-writing committee voted to repeal the exemption, former Republican Gov. Scott Walker vetoed the measure. In 2013, the Legislature passed an amendment that gave the Lumen House Apartments a status similar to that of the Pres House Apartments.
The FFRF is asking the court to issue a declaratory judgment to declare that the property tax exemption violates the Wisconsin Constitution and a permanent injunction to prevent the city of Madison from applying these tax exemptions.
But Pres House Executive Director Rev. Erica Liu told The Daily Cardinal their exemption status does not violate the state constitution.
“The Wisconsin Legislature enacted the property tax exemption statute at issue through conventional, appropriate and lawful means,” she said. “The Legislature and defendant parties each believe the exemption is constitutional, and the allegations which contend the exemption has improper or unlawful origins are inappropriate and highly disputed.”
The residents named in the suit argue the exemption shifts the tax burden to other property owners, like themselves, while excluding secular nonprofits from eligibility.
“This tax exemption also does a significant disservice to all property [taxpayers] in Madison. Every time a property is removed from the tax rolls, all other taxpayers pay more in order to make up for that loss,” Sammi Lawrence, a staff attorney for the FFRF and co-counsel for this case, told the Cardinal. “The Pres House and Lumen House apartments are in prime locations, and if they were paying property taxes they'd likely owe the city in excess of $300,000 a year combined.”
In addition to the two defendants in the suit, the city of Madison was also named as a defendant for their responsibility in assessing property tax and applying the specific tax exemption.
The City of Madison Attorney’s Office declined to comment, saying they had not been formally served with the lawsuit.
Jake Wesson is a staff writer and photographer for The Daily Cardinal. He has written stories covering politics, protests, public safety and more. You can follow him on Twitter @jake_wesson11.
