Does the LDS Church Pay Taxes on Income and Investments?

LDS Perspective

The Church of Jesus Christ of Latter-day Saints operates as a 501(c)(3) tax-exempt religious organization under United States federal law, meaning that tithes and voluntary donations received from members are not subject to federal income tax. These sacred funds, which members contribute as 10% of their income according to the scriptural law of tithing, are reserved exclusively for religious purposes including the construction and maintenance of temples and meetinghouses, missionary work, education, and humanitarian aid. This tax-exempt status aligns with standard IRS treatment of religious institutions, provided these organizations meet requirements regarding their charitable and religious activities. However, the Church does pay taxes on income generated by business investments and acti

Historical Perspective

The LDS Church maintains tax-exempt status under Section 501(c)(3) of the Internal Revenue Code for its religious, educational, and charitable operations, meaning donations and income related to ecclesiastical functions are not subject to federal income tax. However, the Church asserts that its commercial business ventures operate as taxable entities. In a 1991 General Conference address, President Gordon B. Hinckley stated that the Church's commercial properties—including Deseret Book, Bonneville International Corporation, and Utah Property Management Associates—are "tax-paying entities who meet their tax obligations under the laws of the areas where they are located," specifically noting they pay both property taxes and income taxes on profits. Despite these claims, the Church faces ong