HARRISBURG -- The Wesley United Methodist Church in suburban Harrisburg tried for four years to win tax-exempt status for its parking lot.

Church leaders said the off-street spaces were vital to the church's existence, because if members had no place to park, they'd worship elsewhere.

That argument didn't fly with the Dauphin County assessment appeals board, which required the church to pay $1,000 a year in property taxes on the land used for the lot.

But in late December, after battling in Common Pleas Court, Commonwealth Court and, finally, in the state Supreme Court, the Methodists won their case.

And it could have an impact around the state.

The ruling could benefit "churches in a lot of communities throughout the state where local assessment boards are taxing church parking lots," said Harrisburg lawyer James Pannebaker, who represented Wesley United Methodist.

With thousands of churches, synagogues, mosques and other houses of worship in Pennsylvania that have off-street parking lots, the decision could mean a lot of lost revenue for counties, municipalities and school districts.

"We have not seen this kind of good news for churches in a long time," said Gary Harke, executive director of the Pennsylvania Council of Churches, a Protestant group.

The County Commissioners Association of Pennsylvania is not happy about the decision, fearing that an increase in tax-exempt church parking lots could take more property off tax rolls.

"Every decision like this chips away incrementally at the issue of who is taxable," said Douglas Hill, executive director of the association.

"It means the tax burden falls to the remainder of property owners who have not been able to achieve exemptions," he said.

Word of the Supreme Court decision is only now beginning to make the rounds of church officials around the state.

"The case has been summarized for dioceses so they are aware of it, but they will have to wait to see if parishes want to pursue a similar course," said Rich Connell, an attorney for the Pennsylvania Catholic Conference.

"I expect more churches will seek an exemption once word gets around," Mr. Hill said.

The new Supreme Court decision, issued Dec. 30, is a major change from a previous court ruling, issued in 1959. Then, the court said that only the buildings used as houses of worship, as well as adjacent space "needed for light and air" could be considered tax-exempt, Mr. Pannebaker said.

The high court noted, "Times have changed since [the previous case] was decided in 1959. In this day and age, parking lots may be a necessity for a church, rather than just a convenience.

"People and churches have both moved away from towns, and many people are no longer living within walking distance of their church. To attend, they are required to drive and park a vehicle. With no available parking, churchgoers may be forced to seek religious expression elsewhere, causing a decrease in membership and impeding the ability of the church to exist."

Despite the pro-church nature of the Wesley Methodist decision, it is not "a one-size-fits-all situation," Mr. Connell said, and tax exemptions will not be automatic.

Churches, usually those in downtowns and inner-city areas, that use city-owned or privately owned parking garages or on-street parking on Sundays won't be affected.

"My hunch is this ruling will be a benefit to large suburban congregations with large parking lots," Mr. Harke said.

In order for a church to get a tax-exempt status for its off-street parking lot, it must make a case to the county assessment board that the lot is crucial to the church's continued existence.

Mr. Pannebaker agreed that the Wesley church ruling "does not give blanket approval for every church parking lot to be tax-exempt."

The high court said, "We do not hold all church parking lots are entitled to tax-exempt status." But if church officials can prove that their parking lots "are a reasonable necessity to the existence of the church itself, those lots are entitled to such status."

Many churches in Pennsylvania were built in the 19th or early 20th centuries, when there were no cars or their use wasn't as widespread as it has been in the past 50 years. The Wesley church is more than 150 years old.

Mr. Connell said that if a church could convince a county tax appeals board that its attendance would drop significantly without off-street parking, "it might be able to make a case similar to the Wesley case."

Another condition in the case is whether a church rents out its off-street lot during the week as a way to gain additional revenue. If that is the case, the church can't claim a tax-exempt status, Mr. Pannebaker said.