BOISE -- No one likes to go out to the mailbox and find an unexpected bill. That's pretty much what happened to a church in downtown Boise.

The First Presbyterian Church in Boise recently received a $17,000 bill for property taxes for loaning out space to the Treasure Valley YMCA, another non-profit group, to run a daycare and child service.

For the last decade and a half, the YMCA and the church have had a partnership in running a daycare. This year, for the first time, the Ada County Assessor's Office says the church is running a business, and in turn owes taxes.

Walk into the basement of the First Presbyterian Church and you will find kids.

"Those kids need our help. They don't have financial resources, they don't have the parental support that every kid deserves," said YMCA CEO Jim Everett.

Sixteen years ago the YMCA partnered with the church.

"The church has a resource that would otherwise, before we came here, it was sitting, and nobody was using it," said Everett.

From toddlers to teenagers, the YMCA says it does what it can to fill a need.

"We are the downtown child development program now in this community," said Everett.

The YMCA leases this space from the church for $9,558.00 a month. Interim Pastor Zane Buxton says the money from the lease covers utilities and janitorial services. He says it's not a money making venture.

"It really is just a way of providing a service to the community," said Buxton.

But this year a new county attorney reviewed the church's non-profit application. She found that 18 percent of the church is making a profit, the area specifically dedicated to the daycare.

"They determined that we were in essence receiving unrelated business income," said Buxton.

Ada County Commissioner Rick Yzaguirre says it doesn't matter the reason, if the church receives money for leasing the space that qualifies as business income.

"They need to pay their fair share of the property tax, based on the amount of revenue that they're receiving," said Yzaguirre.

That comes out to be a property tax bill of $17,000. That leaves the two non-profits with very few options.

"We would have to discuss with the Y how that affects our continuing operating working relationship," said Buxton.

Everett says when it comes to their bills, they have very little wiggle room.

"It's going to put us in a tough position where we'll have to make some decisions about what do we have to cut,” said Everett. “Maybe we don't cut this. Maybe we cut another program?"

The church has already appealed the property tax assessment to a state tax appeals board. A decision could take anywhere from six weeks to six months.

The county says that the new attorney who reviewed The First Presbyterian Church's non-profit application is interpreting the law different than in years past.

It believes this assessment is more accurate, and that legally, the church should have been paying property taxes all along.
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