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501(c)Files | Nonprofit News

A Precursor to Nonprofit Property Taxes?

by Tom Durso on January 4th, 2008

Most nonprofits don’t pay property taxes to the municipalities in which they’re located, though they often negotiate so-called PILOTs — payments in lieu of taxes — to help defray the cost of municipal services they may consume. But keep an eye on Allegheny County in western Pennsylvania, where a new county councilman recently introduced legislation to assess fees on nonprofit property owners:

The fee — $50, plus $150 per 1,000 square feet of structures — would apply to groups that own the county’s roughly 25,000 tax-exempt properties, according to the proposal. The fee would be charged to certify tax-exempt status.

Governments are themselves nonprofits, of course, and so on one level it’s encouraging to see such creative thinking in pursuit of new revenue streams. Yet targeting entities who use their resources for bettering the communities in which they’re located seems a little, shall we say, mean-spirited. It’ll be interesting to see how the matter plays out. | 501(c)

POSTED IN: Government, Legal issues

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