Two Downtown Churches Sue City of Reno, Nevada, Arguing Religious Exemption from Assessment Fee

The International Community of Christ and St. Thomas Aquinas Catholic Cathedral have filed a lawsuit against the City of Reno, challenging a special assessment fee imposed on downtown property owners. The churches argue that the fee, which funds the Downtown Reno Partnership, constitutes a tax and that they should be exempt due to their status as religious nonprofit organizations.

The assessment, introduced in 2018 by the downtown business improvement district, requires property owners to pay annually based on lot size and proximity to Virginia Street. The funds support initiatives such as hiring ambassadors to assist residents, visitors, and the homeless. The churches claim this fee conflicts with their mission and places an undue burden on religious institutions.

In a letter dated May 3, Bishop Gene Savoy of the International Community of Christ expressed concerns that the assessment sets a negative precedent for churches and other nonprofits. He stated that the fee is not aligned with the organizations’ purposes and could lead to future legal challenges.

City records show the churches would have paid $2,117.65 and $361.55 in 2019, respectively. The Reno city attorney’s office has maintained the legality of the assessment for religious nonprofits, asserting that the fee is a valid municipal charge.

The lawsuit highlights ongoing tensions between religious institutions and local governments over property taxes and exemptions. It also raises questions about the scope of nonprofit exemptions and the role of religious organizations in urban development initiatives. The case is currently under review in the Second Judicial District Court.

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