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U.S. Marshals Seize Baptist Temple

3-Month Standoff Over $6 Million Tax Debt Ends

The seizure ended a three-month standoff spanning 91 days. "The purge has started," said the Rev. Greg J. Dixon, one of five people who were maintaining a vigil inside the independent Baptist church when the seizure began. "It's a sad day for America, a tragic day for religious liberty." There were no arrests or injuries. Dixon said that he believed that President Bush would have issued a pardon and let the church continue to operate. He accused the government of going back on a deal. "We had a promise from the Bush administration," Dixon said after the seizure. "We had every reason to believe we had a moratorium. We've been betrayed and deceived by the Bush administration. "We had a deal." However, his son, Greg Dixon Jr., said that the temple was never promised anything by the Bush administration. "We were expecting the Bush administration to do something," the younger Dixon said. "They're giving millions to faith-based organizations. I think it's a tragedy that they let this take place. "We were never promised anything. We've not heard anything." Mindy Tucker, a spokeswoman for U.S. Attorney General John Ashcroft, said that there was no deal with the Baptist Temple. "Mr. Dixon should want an attorney general who enforces the law, and Mr. Ashcroft has done so in this case," Tucker said.

The Seizure

Despite being physically removed, the elder Dixon (pictured, right) said that the seizure was peaceful. Marshals arrived around 8:45 a.m. Tuesday. As the seizure began, U.S. Marshal Frank Anderson approached the locked glass front doors of the church and read his order for those inside the church to leave, said freelance photographer Seth Rossman, who also was inside the building with two other photographers and a reporter. The elder Dixon and the four other church supporters moved back into the church sanctuary, kneeled and faced the altar in prayer.

Quotes

"I blame this on George Bush and John Ashcroft, the Christians. This is a Republican deal all the way." -- the Rev. Greg J. Dixon, pastor emeritus.

"They have trampled the First Amendment. They have desecrated a house of God. They have brought God's judgment down upon them." -- the Rev. Greg A. Dixon, pastor.

This was a civil action and we treated it in a civil manner." -- Frank Anderson, U.S. Marshal.

"This is just a building, but we worshipped God in that building. This should never have happened." -- Thelma VanHook, church member.

"It is sort of like a death. This is a devastating day for us, but we will go on." -- Tim Sparks, church member

"When they (the federal marshals) stand before God, there are not going to be any lawyers or judges from this world there." -- Joe McDonald, associate pastor.

Marshals entered the sanctuary through a side door, and Anderson identified himself and the agents as U.S. marshals. "You are ordered to leave the building," he said. "Anybody that doesn't leave, we'll have to take further action." Dixon started praying out loud as the journalists were escorted from the church. "I can say personally, this has been as difficult a task as I've had in my 37 years of law enforcement," Anderson said. Those taken from the church offered no resistance, and no one was hurt. At least one of the church supporters walked out voluntarily. "We made no arrests," Anderson said. "We did not charge the doors and things of that sort. "This was a civil action and we treated it in a civil manner. 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." In September, U.S. District Judge Sarah Evans Barker authorized marshals to seize the property, by force if necessary. A parsonage a few miles from the church was seized on Nov. 14. Anderson made the decision of when and how to seize the church. He said that he considered several factors when picking the day to seize. He eyed several other days to seize the church. He wanted to make sure that all appeals were exhausted and wanted to get through the holidays, so as not to disrupt religious services, Anderson said. He also didn't want children, the elderly or members of militias inside the church. 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. Anderson wanted to make sure that the operation was a peaceful one and that no one got hurt. He wouldn't discuss specifics of the operation, but said that he had agents dress in khakis and jackets instead of ninja-type uniforms. "We were instructed and we instructed our people that you will treat people with courtesy and respect," Anderson said. Dixon's son, the current pastor, rushed to the scene when he received word the long-awaited seizure was about to begin and sat down in front of the church. "The fight is still not over," the younger Dixon said afterward. "We are going to continue this fight for religious liberty. "They have trampled the First Amendment; they have desecrated a house of God," he said. "They have brought God's judgment down upon them, their souls, their wives, their children, their political careers. I feel sorry for them." Indianapolis police had blocked off streets in a two-block radius around the church and allowed no one to enter 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, a member of the church for 47 years. "This is just a building, but we worshipped God in that building. This should never have happened." The younger Dixon said he pulled up and tried to get past roadblocks, then asked to see Anderson and was escorted inside. He came out later with his father.

The Politics

The younger Dixon made a recent trip to Washington hoping to meet with someone in the new Bush administration. Though Dixon would not say whom, if anyone, he met with, he said the trip ensured that the Bush administration was aware of the church's situation. "There is no doubt that they did know what was happening. There is no doubt they knew what was happening today," Dixon said. "I think it is amazing that the Bush administration, that claims to be so Christian, has just trampled a church. They are certainly not a friend of Christ, and they're certainly not doing the right thing." While in Washington, the church leaders gave several legislators copies of a draft resolution that they hope will be introduced in Congress. The resolution calls for Congress to clarify churches' exemption from regulations such as tax laws. "I'm glad it didn't happen during the Clinton administration. It's not a Democrat deal, it's a Republican deal," the elder Dixon said after the seizure. "The Republican Congress passed this law back in the mid-'80s, that for the first time churches were required to pay taxes. It was signed into law by ... President Reagan. I stood before Sen. Dole's committee in 1984 and I told Sen. (Bob) Dole that if you pass this law, churches will be closed in America. And now, 19 years later, my prediction has come true. "It was a Republican judge, and now a Republican president, and a Republican Supreme Court that refused to hear it, and a Republican attorney general has now carried this out." Though church leaders had hoped that their chances would be better under the Bush administration than they had been under Clinton's, the marshal had said that politics wouldn't dictate how he handled seizing the Baptist Temple. "I have no concerns about administrations," Anderson had said. "I am sworn to enforce court orders regardless of what administration is in." Church members and supporters had stayed at the church since that date, although the number of supporters dwindled greatly. Anderson (pictured, left) had repeatedly said that he wanted the seizure of the church to be peaceful. In January, about 50 militia members had moved in to watch over the temple. Roger Stalcup, leader of the Southern Indiana Regional Militia, said at the time that he was not condoning violence against U.S. marshals, but said that he wouldn't stand by and watch church members get hurt if the confiscation of their Indianapolis church went awry. However, church leaders said that they did not want the militia there.

The Ordeal

Timeline

1984: The Indianapolis Baptist Temple stops withholding federal income taxes and Social Security taxes from church employees' paychecks.

Sept. 5, 1990: The Internal Revenue Service files tax liens against pastor Gregory J. Dixon for individual income tax due in 1987 in the amount of $25,000.

Aug. 1, 1996: The IRS conducts a sale of church property in Hamilton County.

April 13, 1998: The Department of Justice files a complaint against the church and Dixon. At the time, assessments plus interest and statutory additions totaled $5.6 million against the church and $102,414 against Dixon.

Jan. 19, 1999: U.S. District Court Judge Sarah Evans Barker rejects the church's arguments based on First Amendment and religious grounds.

June 2, 2000: Department of Justice files motions requesting the District Court to order the property vacated.

Aug. 14, 2000: 7th District Court of Appeals unanimously affirms judgment in favor of the IRS.

Sept. 28, 2000: Barker orders the church to vacate its property by Nov. 14, 2000.

Nov. 2, 2000: Appeals court refuses to delay foreclosure.

Nov. 14, 2000: U.S. Marshals peacefully seize church parsonage.

Jan. 16, 2001: U.S. Supreme Court rejects church's appeal.

Feb. 13, 2001: Federal marshals seize church.

The U.S. Supreme Court on Jan. 16 turned down the church's argument that to preserve its religious freedom, it does not have to pay Social Security, Medicare and income taxes for its workers. The decision cleared the way for the church's seizure. The church stopped withholding such taxes from its employees' paychecks in 1984, saying that payment would make the church an agent of the government. The church refuses to register for tax-exempt status. Registered churches are exempt from certain taxes, but still must pay employee withholding taxes. Church members said that those working at the church have paid their federal tax obligations, and add that the government actually collects more taxes from the Baptist Temple than it would if the church were a tax-free entity. For instance, unlike most churches, the Baptist Temple pays sales taxes on all purchases, and its members cannot claim income tax deductions for their donations. "They don't care that the tax was paid," Michael Smith, the church's youth pastor, said about federal officials. "They want to control how the tax is paid." The Justice Department represented the IRS in the legal battle. In the appeal, the church's lawyers cited the Constitution's protection of the free exercise of religion and said the Indianapolis church's doctrine cannot be compared with those of other churches. "The power to tax the (Indianapolis church) in effect controls and suppresses the exercise of the faith and practices of the church," the church's lawyers said. Justice Department lawyers said the Constitution "does not provide a special exemption for one form of church, rather than another, from neutral tax laws of general application." The case is Indianapolis Baptist Temple v. U.S., 00-761.

The Future

The marshal's office and Indianapolis police did not reveal plans for the church property. Both agencies are expected to maintain a strong presence there as emotions run high. "The fight is still not over," the younger Dixon said. "We are going to continue this fight for religious liberty." Members of the church gathered beneath a Baptist Temple sign that they had draped with a black sheet. They held what they called a funeral and prayed. Members said that they will be back on Wednesday to find out what the marshals will do with their building. The legal troubles for the church are not over. The elder Dixon will face trial for allegations of personal tax evasion involving more than $100,000. A fence went up around the property on Wednesday. The receiver of the property is Olympia Partners Ltd. Olympia Partners took over the property from the marshals. According to them, the property is already up for sale and it is expected to be bought by another church or a similar community group. Olympia Partners will maintain the property until a buyer can be found. They will get a percentage of the sale price, 6 percent over $4 million. The remainder will go to the government as court-ordered. "There will either be some organization, I would suspect a school a religious organization or someone who can take advantage of the sanctuary, classrooms, gymnasium and all the property that goes along the ballfields," Gus Miller of Olympia Partners said. Miller was in contact with the younger Dixon several times Wednesday. He is the person that church members should contact to retrieve any personal property that was left inside the church. Some church members are still hoping for a reversal to the seizure. Until then, the church has made other arrangements to continue its services. Church members met at Jonathan Byrd's Cafeteria on the south side for Wednesday services. Sunday's service will be held at Manual High School in Indianapolis at 10 a.m. EST. "God's people don't need a church to pray in. In the final analysis, the church isn't a building," the elder Dixon said. Additional Resources:

• Appeals court ruling
• Indianapolis Baptist Temple
• Internal Revenue Service

This story will be updated. For the latest news on this story, stay tuned to 6 News and TheIndyChannel.