The Archdiocese of Baltimore taxed Sacred Heart of Mary Church in Dundalk, Maryland, more than its total income over eight years, declared it insolvent, and now plans to collect the proceeds of its sale.
(LifeSiteNews) — A recent investigation shows how the Archdiocese of Baltimore has violated canon law by imposing unpayable taxes on a Catholic Church in Maryland, then closing the church and collecting the proceeds of its sale.
The parishioners of Sacred Heart of Mary Parish in Dundalk, Maryland, commissioned and published a forensic accounting report showing that in September 2024, Archbishop William Lori decreed the closure of Sacred Heart of Mary Parish by December 2024, after taxing it at an impossible rate of 131.76 percent over eight years.
Canon law states that the diocesan bishop “has a right to impose a moderate tax for the needs of the diocese upon public juridic persons subject to his governance,” but that “this tax is to be proportionate to their income.” As Canon Law Made Easy notes, “taxing every entity the same amount, regardless of its size or income” is contrary to this rule.
This canon was not followed in the case of Sacred Heart of Mary Parish, which was taxed an average of $70,980 a year by the Archdiocese of Baltimore even though its average yearly income before tax was only $53,870, as the parishioners’ forensic accounting report shows.
The report also found that the archdiocese considered the church to be indebted an additional $363,779 in “special assessments,” due to the lease default of a parish school tenant, AmeriCorps. As the report noted, “Under standard practice, the lessee - not the lessor - would bear liability for a lease default.”
James Grein furthermore noted in a report on the situation for Catholic Confidential, “It is unclear how the Archdiocese would be a party to this transaction, and in any case, why the parish would owe the Archdiocese for income the parish did not receive.”
In other words, all things considered, the church’s “entire deficit stemmed from Archdiocesan-imposed costs,” as Grein noted. On this basis, the archdiocese has closed the otherwise-profitable church, and plans to sell it.
Close and collect schemeRaising further questions about the motive of the excessive taxation, the archdiocese is directing the proceeds of the sale to pay its debts - to the archdiocese - rather than directing those funds to “follow the people to the newly formed parish,” as Archbishop Lori told the press.
Grein shared screenshots showing the discrepancy between Archbishop Lori’s public statement and his private decree, which ordered the “sequestration pro tempore of the temporal goods and assets” of the “civil corporation” of Sacred Heart of Mary Parish “for the exclusive use of meeting [its] debts and liabilities.”
Screenshot of AP article quote of Archbishop Lori, taken 12/25/2024
Screenshot of 9/25/2024 decree of merger from Archbishop Lori, from SHMP Financial Report
As of December 1, 2024, Archbishop Lori had shuttered 31 churches, in what Grein referred to as a “a broader trend of using over-taxation to drive parishes into debt and consolidate them.”
“Church assets are then sold to pay off Archdiocesan liabilities rather than reinvesting in parish ministries,” he noted.
The parishioners of Sacred Heart of Mary Parish have appealed to the Vatican, sharing its financial report and urging Rome to “postpone closure pending an independent audit and review.”
They have also documented a timeline of events regarding the church closure on shmcc.org.
Grein advises readers to consider reviewing their own parish’s financial records, in addition to supporting the parishioners of Sacred Heart of Mary:
“Examine the income statement and balance sheet to identify if your bishop is accumulating excessive taxes as debt. If you uncover concerning patterns, advocate for lower diocesan taxes and seek forgiveness of back taxes as soon as possible.”
