Comments on: Should Nonprofits Pay Property Taxes? http://www.showmedaily.org/2010/04/should-nonprofits-pay-property.html Advancing liberty with responsibility by promoting market solutions for Missouri public policy Thu, 24 May 2012 16:17:46 -0400 http://wordpress.org/?v=2.8.4 hourly 1 By: Mike S. http://www.showmedaily.org/2010/04/should-nonprofits-pay-property.html/comment-page-1#comment-6130 Mike S. Fri, 09 Apr 2010 15:57:48 +0000 http://www.showmedaily.org/?p=16883#comment-6130 Rules for taxation of tax-exempt entities vary greatly from place to place. When the IRS recognizes an organization as tax exempt, that only means the organization doesn't have to pay income tax. Everything else is up to the states and cities where the organization operates. Most states automatically grant exemption from income taxes to organizations the IRS recognizes as tax exempt, but they still have to apply for it. Exemptions for things like sales and property taxes often depend on the type of work the organization does and are harder to come by. Churches are a different story for historical reasons. One good starting point might be to tax property the use of which isn't directly related to the core mission of the organization - college dorms, gyms, and cafeterias for example. Rules for taxation of tax-exempt entities vary greatly from place to place. When the IRS recognizes an organization as tax exempt, that only means the organization doesn’t have to pay income tax. Everything else is up to the states and cities where the organization operates. Most states automatically grant exemption from income taxes to organizations the IRS recognizes as tax exempt, but they still have to apply for it. Exemptions for things like sales and property taxes often depend on the type of work the organization does and are harder to come by. Churches are a different story for historical reasons.

One good starting point might be to tax property the use of which isn’t directly related to the core mission of the organization – college dorms, gyms, and cafeterias for example.

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