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The Church is generally exempt from the payment of taxes on its income. Contributions to the Church are deductible from taxable income to the extent allowed under law. An Internal Revenue Service exemption under Section 501(c)(3) of the Internal Revenue Code dated 3/23/42 covers all Episcopal Churches. You may obtain a copy of the 501(c)(3) exemption letter from the controller’s office.
An exemption from the payment of sales tax to New York State, New York City, or any other locality should be obtained by each congregation from the appropriate taxing authorities.
Real Property Taxes
The New York State Constitution exempts “property used for religious purposes” from the payment of real property tax, but the State requires an annual reporting on purpose and use to the local tax assessor. The burden of this reporting is on the holder of the exemption. If a congregation does not receive the relevant forms each year, it should request them from the local tax assessor.
“User Fee” Taxes
A congregation may or may not be exempt from the payment of certain taxes on the use of water, sewers, etc. Ask your local authority.