Local Property taxes are where this hits the hardest.

Local Tax boards do not like non-profit organizations.  They have a set amount of property in their jurisdiction and when any parcel is made into a tax-exempt entity, depending upon the local and state laws, their taxable base is reduced which forces them to either raise rates on their smaller base or cut services.  (Of course, they could eliminate waste too, but be serious …..).

So, in general there are certain strategies pursued.

1.  Find every reason to deny the local proptery tax exemption application making it prohibitively expensive for some organizations to gain and so they give up and move somewhere else or pay the taxes.

2.  Use zoning laws to prohibit churches from as many areas as possible.  This became such a problem in the late 90's it finally garnered enough attention at the Federal Level that congress passed a law limiting zoning boards from doing this.  (An instance of the Federal Gov't standing up for the churches against local and state gov'ts)

3.  Parse existing laws to where property taxes are assessed on every part of a Church except the actual worship space on a pro-rated basis which of course, means the Church pays pretty close to the full assessment that any other organization does.

If you don't mind me giving a plug, a pretty strong expert in this field is Richard Hammar whose Church Tax and Law report was a resource I used when I was in leadership roles at the Church and District level.  He's been beating this drum for a long time.

I understand the dilemma faced by local governments.  They are cash strapped, and find themselves having to make hard choices.  The changes in our society taking place where the US is seen less as a Christian Nation coupled with the rise in Atheist Activists encouraged by the recent literary successes of Dawkins, Hutchins and Dennett sognal a potential change in public sentiment.  The Churches and Religious Non-Profits are safer targets to get cash than attempting to raise taxes and make no mistake, politicans in general know this and are testing the waters for the times and opportunities they can nibble away to garner these resources.

It's not new.  It's been a trend for as long as I've been associated with ministry.  Maybe it's accelerating now.

The more common reaction in many quarters has been mostly one of Schadenfreud it seems. Plenty of people relish the thought of some ministry they particularly dislike getting stomped by the Grassley Investigation.

But I think you are right in keeping the larger picture in view. I think that government coercion of churches is a definite peril.

It is time, or way past time, for the real true body of Christ to put away “organized Christianity,” or “professional Christianity.” We need to go back to pre-300BC times, before the “institutionalized Church.” The big and rich church just makes me puke. And I think it is the lukewarm church that makes Jesus puke too. It is nauseating.

The real church is the house church, or the home church. As few as two or three gathered together. You don’t need to have a multi-million dollar budget, and everyone (just like the Apostle Paul) can keep their 9 to 5 (and work an honest job for a living), and not have false hopes of getting Rich! (Don’t forget to roll that “R” in Rich!)

On My God, don’t get me started . . .