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Church tax is a tax imposed on members of some religious congregations in Germany, Denmark, Sweden, Finland, Austria and some parts of Switzerland.

Germany

About 70% of church revenues do come from church tax. This is about €8.5 billion (in 2002).

Article 137 of the Weimar Constitution of 1919 and article 140 of the Grundgesetz of 1949 are the legal basis for this practise.

In Germany, on the basis of tax regulations passed by the communities and within the limits set by state laws, communities may

• either require the taxation authorities of the state to collect the fees from the members on the basis of income tax assessment (then, the authorities withhold a collection fee),
• or they may choose to collect the church tax themselves.

In the first case, membership in the community is entered onto a tax document (Lohnsteuerkarte) which employees must surrender to their employers for the purpose of withholding tax on paid income. If membership in a tax-collecting religious community is entered on the document, the employer has to withhold church tax prepayments from the income of the employee in addition to other tax prepayments. In connection with the final annual income tax assessment, the state revenue authorities also finally assess the church tax owed. In case of self-employed persons or other tax payers not employed, state revenue authorities collect prepayments on the church tax together with prepayments on the income tax.

If, however, religious communities choose to collect church tax themselves, they may demand the tax authorities to reveal taxation data of their members to calculate the contributions and prepayments owed. In particular, some smaller communities (e.g. the Jewish Community of Berlin) choose to collect taxes themselves to save collection fees the government would charge otherwise.

Collection of church tax may be used to cover any church-related expenses such as founding institutions and foundations or paying ministers.

The church tax is only paid by members of the respective church. People who are not member of a church tax collecting denomination do not have to pay it. Members of a religious community under public law may formally declare to state - not religious - authorities that they wish to leave the community. With such declaration, the obligation to pay church taxes ends. Some communities refuse to administer marriages and burials of (former) members who had declared to leave it.

The money flow of state and churches is distinct at all levels of the procedures. Specifically, the church tax is not a way of the state alimenting the churches.

The church tax is historically rooted in the pre-Christian Germanic custom where the chief of the tribe was directly responsible for the maintenance of priests and religious cults. During Christianization of Western Europe, this custom was adopted by the Christian churches (Arian and Catholic) in the concept of "Eigenkirchen" (churches owned by the landlord) which stood in strong contrast to the central church organization of the Roman Catholic church. Despite the resulting medieval conflict between emperor and pope, the concept of church maintenance by the ruler remained the accepted custom in most Western European countries. In Reformation times, the local princes in Germany became officially heads of the church in Protestant areas and were legally responsible for the maintenance of churches. Only in the 19th century, the financial flows of churches and state got regulated to a point where the churches became financially independent - the church tax was introduced to replace the state benefits the churches had obtained before.

A taxpayer, whether Roman Catholic or Protestant or member of another tax-collecting community, will pay additionally between 8% (Bavaria) and 9% (rest of the country) of his income tax to the church or other community he or she belongs to.

Denmark

The members of Folkekirken pay a church tax, which varies between municipalities, but can be as large as 1.51%. The tax is generally in the vicinity of 1% of the taxable income. Even people who are not members of the church finances it over their normal taxes as it is part of the governments budget.

Sweden

The members of Svenska kyrkan pay church tax, which varies between municipalities. Church and state are separated as of 2000, however the burial tax (begravningsavgift) is paid by everyone regardless of membership.

In a recent development, the Swedish government has agreed to continue collecting from individual taxpayers the annual payment that has always gone to the church. But now the tax will be an optional checkoff box on the tax return. The government will allocate the money collected to Catholic, Muslim, Jewish and other faiths as well as the Lutherans, with each taxpayer directing where his or her taxes should go.

Austria

Church tax is compulsory in Austria and Catholics can be sued by the Church for not paying it. Anyone who wants to stop paying it has to declare in writing, at their local municipal council, that they are leaving the Church. They are then crossed off the Church registers and can no longer receive the sacraments. The tax amounts to about 1% of the income.

Switzerland

There is no official state church in Switzerland. However, all the 26 cantons (states) financially support at least one of the three traditional denominations--Roman Catholic, Old Catholic, or Protestant--with funds collected through taxation. Each canton has its own regulations regarding the relationship between church and state. In some cantons, the church tax (up to 2.3%) is voluntary but in others an individual who chooses not to contribute to church tax may formally have to leave the church. In some cantons private companies are unable to avoid payment of the church tax.

Finland

All members of either the Evangelical Lutheran Church of Finland and the Finnish Orthodox Church (the two state churches of Finland) pay an income-based church tax of between 1% and 2.25%, depending on the municipality.

To stop paying church tax, one must formally leave the church, originally by giving in a notice and to allow a time of refection. But this has been removed, to just a written statement to the church. Non-church members don't have to pay church tax.

See also

• Tithe
• Peter's Pence

• Taxation