2005:3

(3) Exceptions and Adjustments

(a) Assessment Limits and Maximum. By Conference Year 2026, all churches shall be subject to full assessment on all assessable income up to $550,000. Above that level, there shall be a graduated reduction in the percentage applied. For that portion of a church’s assessable income between $550,000 and $1,100,000, there shall be a reduction of one in the total percentage divided proportionately between the General Fund, the Church Multiplication Fund, and the Education Fund. For that portion between $1,100,000 and $2,200,000, there shall be a reduction of two in the total percentage divided proportionately between the three funds. The percentage in each case shall be applied to the same base income as defined in 2005:1 subject to the exceptions set forth in 2005:4a, b.

(b) Annual Rate. The General Board shall set and publish the annual rate for capped churches based on the increase or decrease of consumer price indices for the previous year or 3 percent, whichever is less.

(c) Mother Church Exception. For the first year following the planting of a daughter church, the mother church shall pay the USF assessments based upon the base income (cf. 2005:1) received in the mother church during that first year.

(d) New Church Plant Adjustment. Whenever a district plants a new church, the USF obligation for that church shall be phased in over the first five years of its operation in the following manner: For the first year of operation, there will be no obligation; for the second year the assessment will be set at 25 percent of the regular assessment; for the third year at 50 percent; for the fourth year at 75 percent; and for the fifth year at 100 percent.

(e) Developing Church Adjustment. Whenever a developing church is deemed to be under financial duress by the district board of administration, that board may subtract up to $40,000 from the USF base income used to calculate the USF obligation.

(f) Restart Project. When a district declares a church to be a restart project (510:6d), the USF obligation shall be phased in over the first five years of its operation in the following manner: For the first year of operation, there will be no obligation; for the second year the assessment will be set at 25 percent of the regular assessment; for the third year at 50 percent; for the fourth year at 75 percent; and for the fifth year at 100 percent.

(g) Urban Missional Church Exception. Whenever a local church is designated as an urban missional church, the USF obligation for that church shall be set at 50 percent of the regular assessment (523).