Property, Sales, Use, and Other Taxes

    In this article, the National Council for Nonprofits discusses how some cities attempt to impose discriminatory taxes or fees on nonprofit entities. In every state the property that is owned by charitable organization are exempt from property taxes. However, some cities try and get around the nonprofit tax exemption by demanding charitable organizations make voluntary payments in lieu of taxes, PILOTs for short. “Threats to property tax exemptions come in many forms from all branches of government: state and local legislative bodies trying to rewrite the rules, executive branch tax assessors seeking to reclassify exempt property, and judges trying to legislate from the bench.” One example of these threats to property tax exemption came in June 2015, where a New Jersey tax court judge revoked the property exemption of a major hospital. In his view, modern nonprofit hospitals do not look like the charity hospitals of the past and no longer deserve tax exempt status. To read about more threats to charitable organization’s tax exempt status, click here: https://www.councilofnonprofits.org/trends-policy-issues/property-sales-and-other-taxes

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