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	County Must Pay Back Property Taxes to Catholic Foundation KVOA [Tucson AZ] August 29, 2005 In the settlement of a lawsuit, the Pima County Assessor's Office must give back all but $5,000 of the nearly $50,000 in property taxes that had been paid on the Roman Catholic Diocese of Tucson's downtown headquarters in the 2004 tax year. The lawsuit was filed last year by the Catholic Foundation for the Diocese of Tucson, which argued that as a charitable entity it should be completely exempt from paying property taxes on the headquarters. The settlement was signed by Pima County Superior Court Judge Carmine Cornelio late last month. Under state law, properties of charitable institutions are exempt from taxation if the institutions and property aren't used or held for profit. But Deputy Pima County Attorney Lesley Lukach said there are various levels of exemptions and the state law requires some nonprofits to pay a lower rate of property taxes rather than receive a full exemption. According to the settlement, the Catholic Foundation is exempt from 85 percent of the property taxes for the diocese headquarters, but is responsible for the other 15 percent because the building is subleased to four nonprofit diocesan entities. The foundation's mission is to support the religious, educational and charitable work of the diocese. It formed more than 20 years ago and helps donors establish endowments and other charitable estate planning. The diocese, which pays rent to the foundation, sold the building because officials said a $14 million settlement in 2002 with 10 men who said they were abused by local clergy left the diocese unable to secure a $1.5 million debt. The debt was owed to the foundation for a loan connected to the diocese's failed investment in a TV station, which caused diocesan debt to reach $23 million in 1988. The diocese filed for Chapter 11 bankruptcy reorganization last year in the face of 22 lawsuits alleging sexual abuse by local clergy.
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