Judge orders Stanislaus County to reimburse Modesto church nearly $100,000. Here’s why
A judge this month ordered Stanislaus County to reimburse The House Modesto church nearly $100,000 in property taxes, but the sum is less than half of what the church was seeking.
The church at Coffee Road and Briggsmore Avenue in 2017 sued the county for property taxes assessed on 33.37 percent of its property, claiming all of it should qualify for religious exemption.
At issue were a fitness center, coffee shop and a facility used for children’s ministry called KidSpace on its 22-acre campus. All of the facilities produce income but do not make a profit, according to court documents.
The church sought $209,904.15 in reimbursement for property taxes paid on those facilities from 2013 to 2019.
During a court trial in February Senior Associate Pastor Mike Trenton testified that in its efforts to attract new members the church must compete with the myriad other interests people have outside of religion.
He said Senior Pastor Glen Berteau’s mission to “win the city of Modesto” is achieved, in part, by having attractions that fit the needs of members and potential new members outside of the house of worship.
“Once they are at the campus, the staff has the opportunity to connect with them,” according to court documents.
In a written tentative decision on April 14, Judge John D. Freeland said Kidspace was eligible for the religious exemption but not the fitness center and coffee shop.
Kidspace, which includes an arcade and play structure, can be rented out for parties for a fee but Freeland said the space is used “primarily as a center for the church’s religious children’s program” and is staffed by a minister, according to court documents.
“The exemption is not destroyed by the fact that some of the rooms are used on the weekends for parties that are not directly part of the church‘s ministry,” reads the tentative decision. “The exclusive use requirement does not prohibit some additional or complementary use on the part of private individuals.”
Freeland wrote that the primary use of the fitness center is “for exercise, not for evangelistic purposes” and that “there is little evidence that the coffee shop fits into the church‘s mission.”
The Stanislaus County Board of Supervisors during closed session Tuesday ”took action to respect the Court’s decision and will not appeal at this time,” said County Counsel Thomas Boze.
Freeland awarded The House $96,558.45, plus interest, for taxes paid on Kidspace. Attorneys for both sides need to meet and confer to determine the amount of interest owed. The House would have to file a separate motion if it intends to seek attorney fees.
Trenton said on Tuesday, “We feel blessed that the judge ruled in our favor regarding the Kidspace because that is more money we can devote to ministry rather than paying taxes.”
Trenton said The House has not yet made a decision on whether to appeal. Their attorneys last week requested clarification about the decisions on the fitness center and coffee shop.
The “only reason we pursued litigation was because all other ... efforts to rescind or remove the tax assessment had failed and we had no other recourse,” he said. The House filed three claims for refund with the county Auditor-Controller prior to filing the lawsuit, according to court documents.
It was “certainly not something we wanted to do but we felt very strongly about our position that this facility is used exclusively for religious purposes and should not be taxed,” Trenton said.
Before the state’s stay-at-home order, some 4,000 members attended services at The House Modesto on weekends, according to Trenton.
This story was originally published April 29, 2020 at 9:29 AM.
