ECCU Blog

by Mark Jones

A growing number of nonprofits are fighting to keep their property tax exemption status as they become the target of tax collectors looking to compensate for increasing deficits in state, county, and local budgets. 

For example:

  • In California, a New York Times article says some nonprofits have been denied property tax exemptions because the state believes the nonprofit is providing “insufficient” benefits to local residents.
  • The city of Boston has asked the largest 45 nonprofits for “voluntary” payments in lieu of taxes and has extended the program to cover any nonprofit with $15 million in revenues.
  • The city of Tacoma is considering reducing the property tax exemption for nonprofit healthcare providers.
  • In 2010, Hawaii unsuccessfully attempted to impose a new tax of 1% on nonprofits.
  • According to the National Council of Nonprofits, some of the top policy issues faced by nonprofits are: Shifting fiscal obligations, attempts to impose new taxes, and attempts to reduce the property tax exemption.
  • The Alliance Defense Fund is currently defending a church in Maine because their church property was given a property tax exemption but their parking lot and parsonage were not.

What challenges has your ministry faced regarding property tax exemptions or new taxes?

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1 comment

  1. The Supreme Court in New Hampshire just ruled against a church that part of its property does not qualify for a property tax exemption. See link for article.

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