North Carolina’s Nonprofit Property Tax Exemption Conundrum
In their article, Thomas Kelley and Christopher McLaughlin discuss the conundrum facing North Carolina and other states about whether certain nonprofits should benefit from property tax exemptions. The article begins by explaining why some local governments believe nonprofits should receive tax exemptions from property taxes. One reason dates back to the 1980s Reagan Revolution, where block grants and other sources of funding were eliminated by the federal government. Since this time, local governments have struggled to pay their bills, forcing them to look for different sources of revenue. The second reason, is that nonprofits have begun adopting fee-generating strategies that make them look like for-profit organizations. For these reasons, many local governments including North Carolina believe that nonprofits should not get exemptions on property tax. The next portion of the article describes the differing views of the nonprofits versus the local governments. Finally, the article ends with a discussion of how North Carolina has been handling these problems and proposes new guidelines on how North Carolina can solve these problems in the future. Another law professor blogged about this article. Paul Caron discusses his opinion of the article in his blog post. You can read his opinions here: https://taxprof.typepad.com/taxprof_blog/2019/01/north-carolinas-nonprofit-property-tax-exemption-conundrum.html<https://na01.safelinks.protection.outlook.com/?url=https%3A%2F%2Ftaxprof.typepad.com%2Ftaxprof_blog%2F2019%2F01%2Fnorth-carolinas-nonprofit-property-tax-exemption-conundrum.html&data=02%7C01%7Cdavid.brennen%40uky.edu%7C226a1be106f04ebb5f7908d67a28acad%7C2b30530b69b64457b818481cb53d42ae%7C0%7C1%7C636830712449885897&sdata=YCJhX4o7PBv77zSUWOoLikdvnaaKpmpS8d4h%2FVYQiiE%3D&reserved=0> read the full article, click here: https://scholarship.law.unc.edu/cgi/viewcontent.cgi?article=6690&context=nclr<https://na01.safelinks.protection.outlook.com/?url=https%3A%2F%2Fscholarship.law.unc.edu%2Fcgi%2Fviewcontent.cgi%3Farticle%3D6690%26context%3Dnclr&data=02%7C01%7Cdavid.brennen%40uky.edu%7C3ed6d5eac895452efccb08d677eefc48%7C2b30530b69b64457b818481cb53d42ae%7C0%7C1%7C636828265652193987&sdata=9V8AcXD%2FMnBHOFqBV6cvHt7psuqC2IvXqo7jhBcAvUg%3D&reserved=0><https://na01.safelinks.protection.outlook.com/?url=https%3A%2F%2Fscholarship.law.unc.edu%2Fcgi%2Fviewcontent.cgi%3Farticle%3D6690%26context%3Dnclr%3Chttps%3A%2F%2Fna01.safelinks.protection.outlook.com%2F%3Furl%3Dhttps%253A%252F%252Fscholarship.law.unc.edu%252Fcgi%252Fviewcontent.cgi%253Farticle%253D6690%2526context%253Dnclr%26data%3D02%257C01%257Cdavid.brennen%2540uky.edu%257C3ed6d5eac895452efccb08d677eefc48%257C2b30530b69b64457b818481cb53d42ae%257C0%257C1%257C636828265652193987%26sdata%3D9V8AcXD%252FMnBHOFqBV6cvHt7psuqC2IvXqo7jhBcAvUg%253D%26reserved%3D0%3E&data=02%7C01%7Cdavid.brennen%40uky.edu%7C226a1be106f04ebb5f7908d67a28acad%7C2b30530b69b64457b818481cb53d42ae%7C0%7C1%7C636830712449895905&sdata=olESKEcm1%2BKvgUMiDNLh1Q2XP9N7sg2sz6KM1KoVHo4%3D&reserved=0>
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