Two cities size up mothballed church property to levy new taxes

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GORDON DANIELS

Last year, Easthampton assessors valued the now-closed Sacred Heart Church on Knipfer Avenue, above, and Notre Dame on Pleasant Street, right, at $5.3 million, bringing taxes of $67,000. The property assessed includes includes schools, outbuildings and rectories.

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GORDON DANIELS

Last year, Easthampton assessors valued these two now-closed Catholic Churches, Sacred Heart Church on Knipfer Avenue, and Notre Dame on Pleasant Street, at $5.3 million, bringing taxes of $67,000. The property assessed includes includes schools, outbuildings, and rectories.

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CAROL LOLLIS

St. Johns

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CAROL LOLLIS

These two properties of the Springfield Diosese, St. Mary’s Church on State and Elm streets, above, and St. John Cantius on Hawley Street, left, have been assessed at a total of $2.89 million, bringing a tax bill of $38,594. The assessment includes the buildings and two adjacent parking lots at St. John’s.

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GORDON DANIELS

These two properties of the Springfield Diosese, St. Mary’s Church on State and Elm streets, and St. John Cantius on Hawley Street in Northampton, have been assessed at a total of nearly $2.89 million, bringing a tax bill of $38,594. The assessment includes the buildings and two adjacent parking lots at St. John’s.

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CAROL LOLLIS

Sacred Heart in Easthampton

NORTHAMPTON - Two vacated Catholic churches were hit for the first time with property tax bills this week after city assessors determined they no longer qualified for tax-exempt status.

In doing so, assessors significantly lowered the previous assessed values of St. Mary of the Assumption Church at Elm and State streets and St. John Cantius Church on Hawley Street to better reflect their market value, according to Principal Assessor Joan C. Sarafin.

The churches - both on the perimeter of downtown - were valued at a combined $5.3 million before assessors adjusted assessed values this fiscal year downward to $2.4 million. Both properties are owned by the Roman Catholic Diocese of Springfield.

"I think our exempt values were probably too high for churches looking back," Sarafin said. "For this year, this was the decision that we made."

The new assessments will translate into an additional $38,594 in tax revenue, based on the assessment of $1.2 million for each of the buildings and another $490,940 for parking lots. That adds to another $3,833 in property taxes the city is expected to receive from the long-vacated St. Catherine of Alexandria Church in Leeds. The city began taxing the shuttered Leeds church several years ago.

Sarafin said it was difficult for city assessors to place a value on St. Mary and St. John Cantius churches as the city rarely sees the sale of nonprofit institutions, like churches, colleges or hospitals.

"You really don't have anything to go by," Sarafin said. "Hopefully we'll see some of these large, impressive churches being sold."

The tax revenues generated by the St. Mary and St. John Cantius church complexes are much lower than two other closed church properties in neighboring Easthampton, which have about double the assessed value and tax bills, records show. That's largely because those properties also include more land, school buildings, and other structures, including one with a commercial kitchen.

Easthampton last year began taxing the properties at the closed Notre Dame du Bon Conseil Church on Pleasant Street and Sacred Heart of Jesus Church on Franklin Street to the tune of about $67,000. The properties were assessed at a combined $5.3 million, which mirrors the previous values Northampton assessors had placed on St. Mary's and St. John Cantius churches in that city.

The diocese has appealed Easthampton's assessments, which are now before the state's Appellate Tax Board.

"We thought it exceeded any reality in market pricing," said Mark E. Dupont, a diocese spokesman.

Because there is disparity in how municipalities assess taxes against formerly tax-exempt church properties, Dupont said the diocese must scrutinize every property assessment and related tax bill. He said diocese officials had not yet discussed the new Northampton tax bills as they were only issued this week, but the billings don't come as a surprise.

"We're not opposed to paying real estate taxes when they are properly assessed," Dupont said. "As a rule, the diocese has a history of paying all appropriate real estate tax bills, and it has been doing that for years."

As for the Easthampton case, the new assessments for Notre Dame du Bon Conseil (where an active day care center remains tax-exempt), and the complex of buildings at Sacred Heart of Jesus off Franklin Street, stand at about $5 million in combined property value with total taxes in the $60,000-range.

As part of its official tax appeal, the diocese has argued that it is still using some of the buildings on the properties for religious purposes, in addition to contesting the assessors' valuations.

Easthampton Mayor Michael A. Tautznik in October said it seemed appropriate for the diocese to move forward with an appeal if it believes the Board of Assessors' decisions are incorrect.

"We encourage any taxpayer who believes their tax assessment is not correct to appeal it," he told the Gazette at the time.

Meantime, Sarafin, Northampton's principal assessor, said she is closely watching several tax appellate board cases involving the taxation of church properties, from Easthampton to an ongoing case in Scituate involving the Catholic Archdiocese of Boston.

"We're watching everything we can watch," Sarafin said.

She said the cases, once settled, should provide more guidance in determining appropriate and fair property values for formerly tax-exempt churches, as will the future sales and use of such structures.

"Once we find out the use, it's much easier," Sarafin said.

Dan Crowley can be reached at dcrowley@gazettenet.com.