Federal officials seize Indianapolis church in tax dispute

By The Associated Press

02.13.01

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U.S. marshals prepare to lift the Rev. Greg J. Dixon from a gurney after removing him from the Indianapolis Baptist Temple as his son, the Rev. Greg A. Dixon, second left, looks on.

INDIANAPOLIS — Federal marshals seized a church today to satisfy a $6 million tax debt, wheeling its former pastor out on a gurney as he protested the move.

The U.S. Supreme Court last month rejected the Indianapolis Baptist Temple's appeal, clearing the way for the seizure.

Experts believe today's action marks the first time the government has seized a church in a dispute over taxes.

"The purge has started," said the Rev. Greg J. Dixon, the church's pastor emeritus, as the marshals wheeled him out.

The church stopped withholding federal income and Social Security taxes from its employees' paychecks in 1984, arguing that the congregation is governed only by God's law and thus not subject to any form of taxation.

Dixon also believes taxing a church is a violation of the First Amendment separation of church and state, and he refused to register for tax-exempt status.

Registered churches are exempt from certain taxes, but still must pay employee withholding taxes.

U.S. marshals rushed into the church, where six or seven people — some who had been holding a vigil there for nearly three months — were gathered in prayer.

"We had a promise from the Bush administration. We had every reason to believe there was a moratorium," Dixon said. "They were going to dismiss the case. We had a deal, and they welshed on the deal."

No one was arrested and there were no injuries, authorities said.

"I can say personally, this has been as difficult a task as I've had in my 37 years of law enforcement," said U.S. Marshal Frank Anderson, who read the order urging those inside to leave. "We waited 91 days for the safest and most opportune moment to act ... we didn't want anyone from our side or the other side to get hurt."

The current pastor, Dixon's son, the Rev. Greg A. Dixon, was not at the church when officers arrived but rushed to the scene and sat down in front of the building.

"The fight is still not over," the younger Dixon said. "We are going to continue this fight for religious liberty."

Police had blocked off streets in a two-block radius around the church. About 50 supporters stood outside the barricades after the seizure.

"I think it is terrible. I think the Lord will come after them," said Thelma VanHook, 82. "This is just a building, but we worshipped God in that building. This should never have happened."

Last September, a federal judge authorized marshals to seize the property, by force if necessary. The Supreme Court on Jan. 16 refused to hear the church's appeal, clearing the way for the action.

A parsonage a few miles from the church was seized on Nov. 14.

The federal government until now had never seized a church for failing to pay taxes, said Richard Hammar, an attorney for the Springfield, Mo.-based Assemblies of God church and an expert on churches and tax law.

"To have the IRS come in and seize the church's property, that is an extraordinary event unparalleled in American history," Hammar has said.