Cheltenham engaged in 11-year legal dispute with Archdiocese of Philadelphia regarding property tax issues.

The ongoing dispute between Cheltenham Township and the Archdiocese of Philadelphia centers on property tax obligations for one of the township’s largest assets, the Holy Sepulchre Cemetery. This controversy has persisted for almost a decade, rooted in the archdiocese’s 2014 decision to transfer the cemetery to a limited liability company (LLC) that it controls, a strategic maneuver aimed at financial stabilization within the church.

Prior to this transfer, in 2013, the archdiocese signed a significant 60-year lease agreement valued at million with StoneMor Partners, now known as Everstory Partners. This partnership was established to oversee operations at 13 Delaware Valley cemeteries, including Holy Sepulchre.

Typically, church-owned cemeteries enjoy an exemption from property taxes. However, following the cemetery’s transfer to the LLC, Montgomery County revoked this tax exemption, initiating a new tax collection process starting in 2015. This decision also impacted Calvary Cemetery in Lower Merion, among the other cemeteries under the same lease.

In response to the tax assessment, representatives for Holy Sepulchre filed an appeal. They argued that, despite the LLC’s ownership, the cemetery remains under the jurisdiction of the nonprofit Archdiocese of Philadelphia and should therefore retain its tax-exempt status. They contested the county’s assessment of .1 million, instead proposing an appraisal figure of .67 million.

This case has drawn in both Cheltenham Township and the Cheltenham and Lower Merion school districts as involved parties. The contentious nature of the legal arguments continues to generate interest, particularly regarding the extent to which the LLC should be viewed as distinct from the archdiocese.

The financial stakes of this case are substantial but remain somewhat ambiguous. The county assessed Holy Sepulchre’s value at .3 million in 2025, which indicates potential tax liabilities exceeding 3,000 for that year alone, with a significant portion allocated to local schools.

As of now, significant procedural delays have occurred in the case. Following a motion filed by Cheltenham to replace the presiding judge due to allegations of inappropriate communication with the cemetery’s representatives, the court has seen no new filings since last year.

Other districts, such as Marple Newtown in Delaware County, have settled similar disputes, successfully obtaining 7,690 for five years of back taxes from their respective cemeteries.

The ramifications of this ongoing case reach far beyond the immediate financial figures, touching on broader themes of property rights, religious exemptions, and community funding. The parties involved maintain a level of silence on their strategies and potential outcomes as they await further developments in the judicial process. The ultimate resolution will likely have lasting effects on tax policy concerning religiously affiliated properties and local government revenue streams.

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