A U.S. Supreme Court ruling that California can tax religious items sold by Jimmy Swaggart Ministries could lead to selective taxation of unpopular religious groups, the evangelist said.
"Now it is clear that all taxes, including income taxes, put on business can now be put on churches," Swaggart said. "Now we have the real threat of intrusion of government into the religious ministry of churches and synagogues."Wednesday's unanimous ruling upheld lower court rulings that California could collect $183,000 in back taxes on books, records, tapes and other items produced and sold by the ministry, based in Baton Rouge, between 1974 and 1981.
Mail-order sales from Swaggart's Louisiana base to California consumers during those years totaled $1.7 million. Sales of merchandise at California crusades totaled $240,000.
The evangelist did not challenge California's taxing of T-shirts, mugs, bowls and crown-of-thorns replicas sold by his ministry during the period.
His challenge of the California tax had been supported by an array of religious groups - including Hare Krishnas and mainline Protestants.
Lawyers for the National Council of Churches, representing most Protestant denominations, called the California tax "a serious threat . . . a tax on the dissemination of religious messages, and thus a forbidden tax on the exercise of religion."
Swaggart, whose ministry was damaged by a 1987 scandal arising from his alleged dalliances with a New Orleans prostitute, said the court's decision could have ominous consequences.
"Unpopular religions, small religions that don't please one particular state government could conceivably be taxed out of business because many churches derive a great part of their incomes from the sale of tapes, records, Bibles, et cetera," he said.
Most states tax the proceeds of at least some mail order sales to their residents, but California and Virginia appear to be the only states that do not exempt religious organizations.
Other states searching for additional tax revenues now could follow California's lead. The Supreme Court said the California taxes do not violate religious freedom.