- March 2010
- Many Nonprofit Programs Hold Even or See Gains in Obama’s 2011 Budget
- Congress Passes Plan to Encourage Cash Donations for Haiti Relief
- Budget Plan Revives President’s Call for New Charitable-Deduction Limits
- Supreme Court Campaign-Finance Ruling Could Aid Nonprofit Advocates
- Obama’s $50-Million Fund to Spur Innovation Gets Underway
- Senate and House Pass Jobs Bills with Tax Credits for Non Profit Employers
- Fundraisers Challenging Utah’s Registration Requirements
- Notre Dame Gets First Property Tax Bill from Indiana County
- Court Rejects Texas Rules on Solicitation Disclosure
- States and Local Governments Considering Taxing Non Profits
- Arizona Takes Donor’s Gift
- MA Non Profits May Lose Out Following Madoff Case Ruling
- IRS Gives Haiti Special Disaster Status
- Recent Estate-Tax Changes Did not Make Big Difference to Charitable Gifts
- IRS Adjusts Levels for Nominal Value Premiums
- Postal Service May Increase Rates and Reduce Service
- All Pages
Page 11 of 17
States and Local Governments Considering Taxing Non Profits
With mounting pressure to cut property tax bills while trying to close ever widening budget deficits, city and states are looking at plans to negotiate payments with universities, hospitals and other large non profits to cover the cost of services provided for what amounts to billions of dollars in tax-exempt property.
PILOTs – payments-in-lieu-of-taxes was first implemented in Cambridge MA in 1973, with about $1 million collected from local non profits. In 2005, the city signed a 50 year agreement with Harvard University that will require Harvard to eventually pay the city nearly $10 million/year.
Other states are considering revoking various tax exemptions for non profits. Hawaii lawmakers are formulating a bill to levy a 1% tax on charities. The Kansas legislature is drafting a measure that would subject non profits to sales taxes. Pennsylvania is considering an end to property-tax exemptions. And local governments in Indiana are starting to place user fees for police and fire services for large non profit organizations.