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The reason for the exemptions for fraternal societies, houses of worship, etc. is the fact that their members pay their own residential and/or commercial property tax assessments while these exempt groups give the community a social life.

Jay

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>>>these exempt groups give the community a social life.

Thank you Brother. That is a solid point and I can buy that. When they actually do it.

I guess what I mean is, we all know of Lodges that are active and vibrant in their communities, doing things that make the community richer because of their existence. But we also know of Lodges that are essentially dead. Zombie Lodges as my good friend Morris calls them. These Lodges don't add value to their communities.

So, I guess I would have to ask, rhetorically anyway, if we do shift a tax burden on to our neighbors, are we then morally obligated to give back to the community that is helping to pay our way?

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Dec 21, 2022Liked by Cameron M. Bailey

I did-not-know-this.

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I guess I've been working with property taxation, rates and policy, for about 23 years now. I've always found it rather fascinating. That said, I know that most people find it dry as dirt.

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Dec 21, 2022Liked by Cameron M. Bailey

This is a deep one.

Many ways of looking at this that must be taken into account.

1. We are in the business of education and teaching men esoteric gnosis through Rituals, Symbols and Allegories. Not religious but arguably spiritual.

2. To teach these lessons we as men of the Craft must meet in a hall or temple.

3. Buildings cost money.

4. Very few lodges are in the money making business, rather we are in the Upright Man and Mason making business.

If we use your example of lodges that should possibly be required to pay taxes that they can not pay then the Masonic Work that is going on thorough out the world would substantially stop because lodges would not be able to pay for their temples.

These communities would have less men of high ethics and morals.

Our communities would suffer.

Multiple sides to this two sided coin.

My lodge has renters and we pay taxes. Without renters we would have no lodge and my home town would be doing zero Masonic Work.

My 2c

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We too have renters, two floors of commercial tenants. That certainly makes things easier.

Yet even so, we do not have enough money to properly operate the Temple, but that is largely our own fault. For as long as I can remember, we have charged Masonic groups (including the Lodge) less than 100 dollars per meeting. That is not enough to maintain the Masonic part of the building, but is driven by the fact that the Lodge, and all the other Masonic groups that meet in the Temple do not charge enough dues. One of our OES Chapters for example is sitting on a dues amount of 15 dollars per year.

Just this year, the Lodge for the first time pushed the dues up above 100 per year, and the Temple board doubled the Masonic rents. But it is still quite likely not enough to properly operate the building.

In contrast, we recently looked at comparable rental spaces in our town. An old Elks Lodge, and an old Eagles Lodge. Both of those would cost approximately ten times as much per meeting.

I think that at some point our Lodges, including my own, must take realistic and honest looks at just how much a building costs to operate properly, so that enough income can be generated to cover those costs.

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Dec 21, 2022Liked by Cameron M. Bailey

Interesting observation as always, MW.

The public use tax exemption requires us to show that we have x uses per year of our Lodge building, for public (non-Masonic) purposes.

Jump through a few hoops, fill out a few forms, and the tax man will lower our tax burden to acknowledge the public (rather than just Masonic) benefit we provide to the community.

Or, to put it another way, we can quite properly put our buildings in a lower-tax category.

Focus on the Lodge: get the exemption. Lower the tax burden.

Focus on the community: think first of the consequences of shifting that tax burden.

One of my plans for the new year is to have my Lodge consider the exemption. When we do, now we’ll have a deeper discussion.

Very interesting, MW, thank you.

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>>>Focus on the community: think first of the consequences of shifting that tax burden.

As part of thinking about those consequences, I think we should consider them from an honest view of our Lodge's actions.

What I'm trying to say is that the law includes regulations that attempt to ensure that in exchange for preferential tax treatment, we are providing meaningful benefit to the community.

But of course there is following the letter of the law, and following the spirit of the law.

Our buildings can truly be a benefit to our community, if we truly open them up to our community. If we allow them to be used for other organizations, formal or informal, to thrive. If we truly become a partner, lending our asset to those making a positive difference within our community.

If we are seriously doing our best to use our real estate in a manner that improves our community, then I think the conversation about shifting our tax burden is quite different than it would be if we are not seriously trying to use it to make a difference.

In other words, are we doing all we can with our real estate to benefit our community, or are we doing the minimum amount possible in order to technically comply with the law. Those are I think two radically different things.

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Dec 24, 2022Liked by Cameron M. Bailey

Agreed.

For us, and presumably other Lodges, it will be an evolutionary process.

First, what does the law say? Are we in a position to comply with it at all?

If so, we’ll probably start with letter of the law and work our way to spirit of the law, as you describe.

Focus on the tax break: may or may not be worth doing.

Focus on the community: the tax break will probably be the least of the benefits in the long run.

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>>>Focus on the community: the tax break will probably be the least of the benefits in the >>>long run.

I think that there is a lot of wisdom in this statement.

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We provide benefits beyond just dollars. We try and make men pillars of the community.

The vast majority of lodges also raise money for the community for charity, scholarships, feeding the homeless, food banks, clothing drives, backpacks for kids, bikes for books, etc.

Moneys spent on building maintenance goes back into the state coffers via business taxes, employee salaries, sales taxes, etc. The building doesn’t exist in a vacuum.

Money spent on the meals is taxed. Money spent on suits and ties, flowers, hotels and convention centers, booze (!!!), ice…I could go on but you probably get my point.

Finally, if the state is going to truly miss the money gained via taxing our lodge buildings, when they have a 70 billion dollar budget, something is seriously wrong. And if they did feel the need to take those taxes, they would remove that exemption - which in this state wouldn’t surprise me one bit.

Especially in this state I do not weep for their tax problems.

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I’d also add, property taxes are levied by the county, are they not? I have seen counties do some shady crap to enrich their coffers. Assessing older buildings at astronomical levels to try and force owners out, so that the buildings can be sold, demolished, and new multi use commercial buildings and apartments can take its place which boosts untold millions more in revenue.

Nope, I don’t cry tears for them at all.

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The State, County, Schools, Hospital Districts, Library Districts, Cemetery Districts (in some places), Cities, Diking/Drainage Districts (in some places), Fire Districts... The list goes on and on.

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>>>Finally, if the state is going to truly miss the money gained via taxing our lodge buildings, when >>>they have a 70 billion dollar budget, something is seriously wrong.

I have no disagreement with your main point at all. Taxes are too high at all levels of government, and governmental spending is rife with waste. When I saw the most recent Operating Budget Proposal from the Governor I was honestly shocked by how much more we will be spending in 2023-2024 than we spent just a few years ago. The percentage of increase is truly mind boggling.

But, that is not how the property tax system works. If our Lodge receives a property tax exemption, the taxing authority receives the exact same amount of money it would have received had we not been granted that exemption. The exemption does not lower the total amount of taxation by a cent. Rather it shifts the burden. If we don't pay, government doesn't get less money, it simply gets more from our neighbors. It is a zero sum game.

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Dec 22, 2022Liked by Cameron M. Bailey

My experience in dealing with tax exemptions in Washington State as an attorney for 27 years is confirmed by your explanation MWB. My lodge applied for a public use exemption which was denied soon before I was raised. Having reviewed the criteria today I still see insufficient basis for my lodge to qualify. The laundry list of exemptions has a sound basis. IMO lodges that properly qualify have an obligation to apply for the exemption(s) under which they qualify. But those lodges that don’t meet the criteria shouldn’t waste their time and government agency time applying and hoping for relief. The reason for exempting houses of worship is separation of church and state along with the assumption that the primary use of their assets is charitable. I am not aware of a fraternal society exemption in the property tax statute.

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>>>>But those lodges that don’t meet the criteria shouldn’t waste their time and government agency >>>>time applying and hoping for relief.

And of course, errors are made. If a Lodge doesn't meet the criteria, it would be the worst kind of theft for it to apply anyway, hopeful that it slips by somehow.

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Dec 22, 2022Liked by Cameron M. Bailey

Being someone who took on the pain stacking process of getting my lodge tax exempt. This is a very valuable thing to do, not only for your lodge but for the brothers and future brothers of that lodge. When I started the process I made alot of phone calls to the Department of Revenues to make sure we were able to do this. So after that I sat down and figured out that we do put out a significant amount of money between upkeep and general maintenance of the building. I also had to show that there is usage of 50% public use and 50% private use. So once again I made more calls and found out that public use is defined by the department of revenue as any public gathering that the public in general can walk through our doors and see what is going on. Meaning that for the lodge any event that is declared "open" is considered a public use gathering. Closed events such as degree work and what not are considered private use. This also applies to any of the other bodies that may use tour lodge. So while building the application I had to recreate a whole bunch of documents that were never created in the first place such as rental agreements to thel odge and OES that pay rent and use agreement to the youth groups. Along with a rental contract for the car club that is on a longterm rental with us. So after all that as done, I finally submitted the application and had to wait with patience to find out if I got approved or not. Well everything but our paved parking lot which is not that much in property taxes. And we rent it out to the county for their overflow parking for the court house. So by doing this it has opened my fellow lodge brothers to become more invested in the lodge and Masonry without having to worry about the not having enough to pay the property taxes and losing the building. I have also helped another lodge get property tax exempt and they were in worse financial state then my lodge and if they did not get it they would have had to make some hard choices about the future of their building. Before all of this my lodge went through the board of equalization and that is only a band aid for a bleeding artery, it does not last forever and once the time frame ends your property taxes go back to what any adjusted rate for that tax year would be. This is something that has become a passion of mine and I would gladly help any lodge in this state become tax exempt the proper way through the department of revenue. Just reach out and ask me.

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Thank you for your service to our Fraternity Brother!

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Dec 22, 2022Liked by Cameron M. Bailey

Under the laws of our nation tax avoidance is legal, tax evasion is not. If there's a provision in the tax law that allows us to avoid taxes we're nothing less than good law abiding citizens when we avail ourselves of the tax benefit.

Ethically I'm very comfortable with Masons being exempt from both property and income taxes. I'm also extremely uncomfortable ... no, strike that ... repulsed that certain organizations qualify for tax exempt status. For example, the NFL, an club made up of billionaires who solicit cities and states for public funding of their stadiums. Also, many Blue Cross/Blue Shield health plans. Premera, a qualified not-for-profit organization that annually imposes double-digit premium increases on its subscribers pays its CEO $5 million annually (you can look it up).

Both the NFL and Premera are acting legally but not ethically. We Masons, on the other hand, are legal and ethical. Before we question the validity of our tax exemptions let's address the unethical use of our nation's tax laws.

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>>>Ethically I'm very comfortable with Masons being exempt from both property and income taxes. >>>I'm also extremely uncomfortable ... no, strike that ... repulsed that certain organizations qualify >>>for tax exempt status. For example, the NFL, an club made up of billionaires who solicit cities >>>and states for public funding of their stadiums. Also, many Blue Cross/Blue Shield health plans.

Thank you for posting this Brother. I really appreciate the perspective, and have been thinking about it the last couple of days. You have certainly expanded my thinking on this issue.

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Dec 24, 2022Liked by Cameron M. Bailey

Properly operate is interesting to me. What is properly operating mean for your lodges situation? If lodge building is paid off the rent should take care of the taxes and wear and tear etc for maintenance. Just curious. During my tenure as WM this year i created a committee for the express purpose of addressing the age of our building, size and cost to upgrade issues. Instead of selling and making a huge profit then building a building that better suits our needs the lodge decided to stay in our old building. I think it is the wrong decision but I am only one person.

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I don't believe that my Lodge is properly operating its Temple because:

While it has always collected enough money from its tenants (including Masonic tenants) to pay the day to day expenses, (taxes, insurance, utilities &c.) it has not, for decades collected enough money to either take care of routine maintenance nor set aside moneys for extraordinary expenses.

The building was able to survive this lack of proper funding for many years, simply because it takes a long time for buildings to deteriorate. But now the roof is questionable, the exterior walls are in danger of collapse, the lodge room ceiling is badly water damaged &c. There is enough money in savings, from decades and decades ago to replace the roof. There is no other money.

The members of the Lodge, will now, have to decide if we are willing to contribute the money necessary to begin restoring the building, of if we will sell it before it is damaged any further. The problems caused by a lack of resources can not be ignored any longer.

We are lucky however in that we are in a good position to sell if that is what is decided. It is a beautiful building, extremely well located. We could easily operate well as a Lodge in a building 1/10th of its size, as it was built far too large, in a time when Masons believed that the Fraternity would continue growing forever.

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There's a reason that the tax code in Washington is written in the manner that it is. When it comes to taxes, that's Gov. Jay Inslee's solution to everything...tax it more. For years, Washington has operated with a multi-billion dollar tax surplus. That gets used for frivolous spending on climate change studies, Inslee's failed presidential campaign, meanwhile teacher's unions continue to give themselves raises and schools fall into physical disrepair....which results in another bond levy being passed, you know, "for the kids". There is no responsible property management and no accountability for those who do little more than take up a 6-figure line item expense on a budget sheet. When those folks mismanage things, committees need to be formed to do studies, at the taxpayers' expense. Then a problem gets identified - made-up or otherwise - and another committee and multiple studies need to be conducted to schedule a meeting to have a conversation about thinking about forming another committee to contemplate solving a problem that we already know exists.

Speaking of tax revenue, how much did WA get fleeced by Nigerian scammers for unemployment/COVID relief? Where did that $650 million go? There's legislation on the table to give incarcerated people minimum wage....yes, you get paid to go to jail.

With the insane amount of financial ass-clownery going in in WA State government (don't get me started on the Biden administration), I'll gladly pay a little tax as possible. WA State "leadership" is not 'For the people', they are about grabbing power and creating voters who are dependent on the government because those folks are easiest to control.

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