City votes to end local property tax-exemption

Last week, theSuffolk City Council voted to no longer accept local property tax-exemptionapplications from non-profit organizations. Members of the council voted aftera two-year study showed that the exemption was costing the city money. Suffolk’sChief of Staff also explained that many of the nonprofit organizations applyingfor the exemption were actually able to afford the tax bill.

This is not thefirst time a city has complained that local property tax-exemptions for nonprofitorganizations drain the city’s budget. However, unlike Suffolk, many citieshave refrained from refusing to accept tax-exempt applications entirely.

One Suffolkcouncilman feels the city’s decision is too restrictive.  He argued that the city could havecontained the number of nonprofits enjoying the exemption by carefullyscrutinizing the organizations on a case-by-case basis and by reserving theexemption for those nonprofits with the most need.

The council’sdecision raises a few interesting questions. Should it matter that some nonprofitorganizations applying for the exemption could “afford the tax bill?” Whyweren’t the applications for tax-exemption previously scrutinized on acase-by-case basis? What justifications support the argument that the exemptionshould be reserved for nonprofits with the most need?

http://www.wvec.com/news/local/tax-exempt-222742181.html

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