ACLJ Seeks Tax-Exempt Status for Religious Organizations in Idaho.

Business Editors & Legal Writers

BOISE, Idaho--(BUSINESS WIRE)--Sept. 7, 2001

The American Center for Law and Justice, an international public interest law firm, announced today it has entered the case of religious organizations in Idaho that have been denied tax exempt status for their property in Custer County, Idaho.

The ACLJ has gone to Idaho state court on behalf of the organizations in an effort to overturn a decision by the Idaho Board of Tax Appeals that refused to grant the organizations property tax exemptions.

"This is a case that focuses on the unfair and discriminatory action of the state of Idaho - targeting religious organizations that are legally entitled to tax exempt status for property owned and operated in Idaho," said Stuart J. Roth, Senior Counsel of the ACLJ, which is representing the religious organizations. "It is our position that the refusal to grant a property tax exemption violates the constitutional rights of our clients and we are hopeful the court will halt the discriminatory action taken against our clients and provide the tax exempt benefits that are afforded to other non-profit organizations."

The ACLJ today filed an amended lawsuit in the District Court of the Seventh Judicial District of the State of Idaho in Challis, Idaho against Christine James, the Assessor of Custer County, Idaho on behalf of Living Waters Ranch, Inc., First Fruits Foundation, and Christopher James who operates the organizations.

First Fruits Foundation is a non-profit organization that leases property to Living Waters Ranch, Inc. - a non-profit organization that uses the property in Custer County as a Christian retreat, counseling center, church camp, and Christian education center. Both organizations have been granted 501(c)(3) tax-exempt status by the Internal Revenue Service.

The Assessor of Custer County initially rejected a request to declare the property tax exempt. The Board of Equalization for Custer County overturned that decision. In July 2001, the Idaho Board of Tax Appeals reversed the decision of the Board of Equalization and denied tax-exempt status for the property saying the plaintiffs were not religious organizations under Idaho law.

A lawsuit was filed on behalf of the plaintiffs on August 20, 2001 in the District Court of the Seventh Judicial District of the State of Idaho by Robert Aldridge, a Boise attorney. The ACLJ then entered the case and today filed an amended lawsuit with the court - outlining the specific charges against the County Assessor and requesting that the court overturn the decision of the Idaho Board of Tax Appeals. Further, the amended lawsuit requests the court declare the actions of the Assessor to be unconstitutional and seeks a preliminary and permanent injunction preventing further discrimination against the religious organizations.

The amended complaint contends the plaintiffs also make the property available to community groups and organizations often at reduced cost or free of charge. The suit contends the actions of the Assessor violate numerous federal and state constitutional rights including the First and Fourteenth Amendments of the U.S. Constitution as well as the Free Exercise of Religion Act of the State of Idaho.

"We want to protect the constitutional rights of our clients," said Roth. "It is clear that our clients are legitimate religious organizations entitled to the same constitutional protections afforded to other non-profit organizations. We are seeking equal treatment in this case and an end to the religious discrimination that has been exhibited against our clients."

The American Center for Law and Justice is an international public interest law firm focusing on constitutional issues and religious liberty work. The ACLJ is headquartered in Virginia Beach, VA and its web site address is www.aclj.org.