The church is tax-free, but employees have to pay tax on income.
I lived in state housing on the grounds of two prisons. The last one I paid 147 a month. The market rental was 675. I had to pay taxes on the difference because it was benefit of my job and therefore income.
That’s a recent development and only after court order.
Separation of church and state used to have a very real meaning for.
But the FFRA has been adamant about twisting the propaganda that the churches are taking your tax dollars.