Kishore Jayabalan, the Acton Institute’s Rome office director, was interviewed by the Zenit news agency in an article titled, “Is Taxing the Church a Real Solution for Italy?” In the article, Jayabalan discusses the history of the Italian state and its imposition of property taxes on the Roman Catholic Church’s land holdings, residences and non-profit businesses.
Sometimes in the past, particularly under Napoleonic rule and before the Lateran Pacts, the institution of property tax was often a subject of state persecution of the Church in economic terms. Mr. Jayabalan answers critical questions about the reasons behind Italy’s evolving (or rather “revolving”) fiscal policies and historic land expropriations to the Church’s detriment.
The Church has traditionally been exempt from paying ICI [property tax] on mercial entities because they serve a social purpose. The old law actually exempted entitles that were ‘predominantly’ mercial. The new law exempts simply mercial entities, so there will be some re-defining of what is mercial or not by the Italian Ministry of the Economy. Jewish, Muslim, and other religious, and for that matter secular, non-profits were also ICI-exempt, so this was not a case of special pleading for the Catholic Church in Italy, even though Catholic institutions dwarf the others numerically…
Of course this is not the first time the Church has been muscled out of land. Napoleon’s massive cash taxes upon his conquest of Italy were designed to force noble families (generally with very close ties to the Church) out of their lands and titles. Napoleon spared the Church the niceties of taxes, choosing to simply expropriate the property. The unification of Italy as well saw Church lands, art and lives lost as the new nation was formed. But even this was nothing new. After all Nero had blamed the Christians for a fire he set to clear some land in downtown Rome, so in the end Sts. Peter and Paul and 900 other Christians were killed for a real estate deal.
To read Jayabalan’s full interview, go here.