The curious argument has sometimes been urged that churches raise the
value of adjacent property, and should therefore escape taxation. If
this be indeed a fact, it proves either nothing to the purpose or a
great deal too much for the comfort of those who put it forward. It is
difficult to see why the taxpayers of an entire city should reward the
church for enriching the few property-owners canny enough to secure land
adjoining clerically owned property. By merely increasing the value
of certain pieces of property at the expense of land less fortunately
located, the community as a whole is not made a substantial gainer.
Even taking the most favorable view, it is certain that the "unearned
increment" of the property adjoining the church will never rise so high
as to overbalance the total value of the church property withdrawn from
taxation; and hence the encouraging of church-building by tax exemption
must represent a net financial loss to the community. Moreover, every
improvement on land increases the value of neighboring property;
hence the argument, if valid at all, warrants the exemption of all
improvements from taxation, and the equal taxation of all land values,
whether the land is built on by churches or otherwise utilized, or left
wholly unimproved.
The fact should also be recognized that to many the existence of
churches adjacent to their property is anything but a benefit. So far
from regarding the value of their property as increased by the coming
of a church, many an owner will resent the intrusion, and sell out at a
loss, rather than be exposed to some of the features of church activity
in his immediate vicinity. To many, the ringing of church bells is an
intolerable nuisance and a positive grievance. The collection of crowds,
even of the most decorous nature, is most objectionable to others.
In New York and other cities, property in certain sections is highly
restricted by deeds which provide against the erection of churches, no
less than of livery stables and other structures considered undesirable
in a residential neighborhood. Real estate men do not bear out the claim
that the inevitable or even the usual result of the erection of churches
is to increase the value of property in the vicinity.