Another Bernero official tied to late taxes

The gubernatorial campaign of Lansing Mayor Virg Bernero is once again facing questions about back taxes owed by someone close to the mayor. This time, Bishop David Maxwell, the city’s director of Community and Faith Based Initiatives, is answering questions about his back taxes.

City Pulse, a weekly newspaper in Lansing, reports Maxwell’s Lansing property had an outstanding tax payment of $6,520 until Tuesday. The newspaper reports Maxwell’s tax payments have been late at least two years for every tax year between 2001 and 2008. Maxwell said the payments were supposed to be paid by his church, as part of his contract as pastor there.

This comes after Maxwell transferred title of the property to his church, Eliezer Temple Church, last week. The transfer came as news broke that Bernero campaign treasurer Charles Moore owed $91,000 in taxes on properties in Lansing. That revelation lead to Moore being asked to resign by Bernero.

But Maxwell told the City Pulse the transfer had nothing to do with Moore’s tax troubles, and everything to do with a contractual agreement with his church. He tells the Pulse that the plan to transfer the house had been in the works for some time. By transferring the property to church ownership, it will come off property tax rolls as parsonages are not taxable in the state. The church will still have to pay taxes on the house for 2010, however, as the parsonage exemption would not kick in until 2011, Ingham County Treasurer Eric Schertzing said.

Maxwell denies direct involvement in the Bernero for gov campaign while on city time. At a campaign kick-off rally, he was not only in attendance, he spoke to Bernero supporters and introduced speakers. And his delay in paying taxes could have been an issue for Maxwell and his employment with the city. City Charter requires employees, elected officials and appointed board members not be in “default” to the city.

Bernero will square off with state Rep. Alma Wheeler Smith of Salem Township and Redford Township Democrat Andy Dillon, the Speaker of the Michigan House, in August for the Democratic nomination for governor.