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Senate committee adopts cap allowing small congregate uses of parsonages to remain tax-exempt
Summary
The Senate Ways and Means Committee voted to advance Senate Bill 291 as amended, adding a cap to preserve tax-exempt status for limited congregate living or employee housing in former parsonages.
The Senate Ways and Means Committee voted in executive session to advance Senate Bill 291 as amended, adopting amendment 7-31s to cap the number of congregate units that can be housed in a religious parsonage while preserving the property’s tax-exempt status.
Supporters said the amendment narrows the bill’s original language to preserve common religious uses — for example, housing a groundskeeper or secretary — and to allow small residential programs run by religious organizations without triggering property taxation.
Senator Sullivan said, “what this amendment does is just put a cap on the number of units,” explaining the intent was not to allow large, tax-exempt multiunit housing developments run by religious organizations. He described the bill’s focus as unused parsonages and similar properties where a designated church employee or a small residential program might live.
Committee discussion clarified that the bill treats congregate living as a dormitory-style arrangement — a set of private sleeping rooms with shared living space — and that sober homes and other recovery residences could fall under that definition if they meet existing regulatory requirements. "A congregate housing unit could house 12, 15, 20 people, but it would be included in one of these six units?" one senator asked; another replied, in the discussion, that the draft envisions one-bedroom units and a five- or six-person congregate arrangement as qualifying for the exemption.
An amendment introduced during the session (amendment number 7-31s) was adopted by voice vote and the committee moved the bill forward as "ought to pass" as amended. The committee did not record a roll-call tally in the transcript and advanced the bill on a voice vote.
The committee chair noted the bill is not an early-filed measure and carries no fiscal note, and that the panel could hold the bill if members preferred further modification.
The committee recorded the action as: amendment adopted; bill advanced as amended. No additional conditions or effective dates were specified in the committee discussion recorded in the transcript.
Looking ahead, the committee left one of three bills on the agenda for later consideration and said members could return to SB291 if further changes were needed.
