Madison, WI — A legal challenge is fermenting in the heart of Madison where a lawsuit was initiated on Jan. 14 by the Freedom From Religion Foundation (FFRF) along with three city residents. The suit aims to eliminate the religious tax exemptions granted to two student housing centers, citing a potential breach of the Wisconsin Constitution.
At the center of this controversy are the Presbyterian Student Center Foundation and St. Raphael’s Congregation. The Presbyterian Student Center Foundation runs the Pres House Apartments located on East Campus Mall, while the St. Raphael’s Congregation operates the Lumen House Apartments on Johnson Street.
The FFRF argues that the tax exemptions these student housing facilities enjoy under Wisconsin law contravene four key constitutional provisions that advocate for equal taxation, prohibit favoritism towards religious entities, and reject arbitrary classifications and private legislations that specifically advantage individual organizations.
A pivotal moment in this ongoing dispute was back in 2009 when Wisconsin’s legislature passed a property tax exemption for Pres House Apartments. This decision was nearly reversed by the legislature’s budget-writing committee in 2011, but the repeal was vetoed by then-Republican Governor Scott Walker. The plot thickened in 2013 when the legislature similar exempted the Lumen House Apartments, solidifying their tax-free status.
The FFRF is pushing for a declaratory judgment from the court to assert that these property tax exemptions are unconstitutional, along with a permanent injunction that would prevent the city of Madison from applying these tax exemptions in the future.
Rev. Erica Liu, the Executive Director of Pres House, disputes the FFRF’s claims, asserting that the tax exemptions were enacted through lawful means and defended by both the legislature and the parties benefiting from these exemptions. According to her, the allegations questioning the legitimacy of these exemptions are both inappropriate and contentious.
Residents involved in the lawsuit have expressed concerns about the broader financial implications, emphasizing that these tax exemptions shift the financial burden onto other property owners and exclude secular nonprofits from similar benefits. Sammi Lawrence, a staff attorney for the FFRF and co-counsel in the case, highlighted the fiscal impact on Madison’s taxpayers, estimating that collectively, the Pres House and Lumen House apartments would owe the city upwards of $300,000 annually in property taxes if not for their exempt status.
The lawsuit also names the city of Madison as a defendant, holding it accountable for its role in assessing property tax and implementing the disputed exemption. The City of Madison Attorney’s Office has yet to comment on the issue as they have not been formally served with the lawsuit.
As this legal battle unfolds, it touches upon critical questions of constitutional law, state authority, and the delicate balance between religious freedom and public fiscal responsibility.
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