05-13-2011, 05:31 PM
Here's the law in my state. In general, most but not all not for profits are exempt from property tax:
Nonprofit organizations in the state of Washington may be eligible for an exemption from property tax. In most situations, nonprofit ownership is required to qualify for an exemption. In addition, the organization must conduct an activity specifically identified in the exemption laws. The use of the property determines the exemption. Not all nonprofit organizations have a purpose and activity that entitles them to an exemption.
Typical organizations receiving a property tax exemption are schools, churches, cemeteries, hospitals, social service agencies, character building organizations, nursing homes, homes for the aging, museums, and public meeting halls. Nonprofit organizations engaged in artistic performances for the general public, including production of musical, dance, artistic, dramatic and literary works, as well as art, scientific and historical collections, are also exempt from the property tax on property actually used for these purposes.
Generally, labor unions or fraternal organizations are not eligible for an exemption, unless they are using their property for an activity exempted by law. For example, a training facility operated by a labor union could qualify for an exemption as a school.
This is most likely what our church would do if the law changed and religious activity were subject taxed:
The way we would be hurt more is that donations to the religious activities would no longer be tax deductible, right? So we'd have to split tithing and donations to the non-profit, which would have a chilling effect on the public services, to be sure.
We would form a separate not for profit for our non-religious activities happening in our church. That would get tricky...where would AA meetings fall? They have a religious basis but operate completely independently from our church.
So we would pay taxes on the time and percent of the building used for worship, religious education and congregational meetings and fellowship, but not the other activities.
This would bring in relatively little money to the community, frankly I don't see the value.
Our town just built a beautiful new community center and we have a lot of schools, of course, but use of those is not free, it's quite expensive actually. We are doing something that local government simply will not do, which is fully subsidizing activities that we think are important for groups with very little revenue.
And how you would you handle very large not for profits like Catholic Charities USA? They are the largest private social service network in our country but are not funded by the church. Would they be taxed because they operate on religious values but don't operate as a church? There are so many of those organizations, I think you'd be in for a shock if you tried to say that everything associated with religion has to be taxed.
Nonprofit organizations in the state of Washington may be eligible for an exemption from property tax. In most situations, nonprofit ownership is required to qualify for an exemption. In addition, the organization must conduct an activity specifically identified in the exemption laws. The use of the property determines the exemption. Not all nonprofit organizations have a purpose and activity that entitles them to an exemption.
Typical organizations receiving a property tax exemption are schools, churches, cemeteries, hospitals, social service agencies, character building organizations, nursing homes, homes for the aging, museums, and public meeting halls. Nonprofit organizations engaged in artistic performances for the general public, including production of musical, dance, artistic, dramatic and literary works, as well as art, scientific and historical collections, are also exempt from the property tax on property actually used for these purposes.
Generally, labor unions or fraternal organizations are not eligible for an exemption, unless they are using their property for an activity exempted by law. For example, a training facility operated by a labor union could qualify for an exemption as a school.
This is most likely what our church would do if the law changed and religious activity were subject taxed:
The way we would be hurt more is that donations to the religious activities would no longer be tax deductible, right? So we'd have to split tithing and donations to the non-profit, which would have a chilling effect on the public services, to be sure.
We would form a separate not for profit for our non-religious activities happening in our church. That would get tricky...where would AA meetings fall? They have a religious basis but operate completely independently from our church.
So we would pay taxes on the time and percent of the building used for worship, religious education and congregational meetings and fellowship, but not the other activities.
This would bring in relatively little money to the community, frankly I don't see the value.
Our town just built a beautiful new community center and we have a lot of schools, of course, but use of those is not free, it's quite expensive actually. We are doing something that local government simply will not do, which is fully subsidizing activities that we think are important for groups with very little revenue.
And how you would you handle very large not for profits like Catholic Charities USA? They are the largest private social service network in our country but are not funded by the church. Would they be taxed because they operate on religious values but don't operate as a church? There are so many of those organizations, I think you'd be in for a shock if you tried to say that everything associated with religion has to be taxed.