Maine Proposal to Impose Property Tax on Nonprofits Sparks National Debate

Maine Proposal to Impose Property Tax on Nonprofits Sparks National Debate

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One major reason that nonprofits are exempt from tax is due to the beneficial impact of their work on local communities. “Property tax is a benefits linked tax and the exemption is provided to pay for services,” said Walczak. “Localities often rely on nonprofits to provide these services.”

Increasing the tax burden on nonprofits will diminish the ability of these organizations to provide important services that are highly valued by local communities and may also result in a reduction of nonprofit employment, added Schnapp.

In Maine, opponents of the LaPage plan claim that the tax would diminish funds and result in adverse impacts for nonprofits and the local communities they benefit. “Nonprofits provide important services that the government refuses to fund or cannot afford to fund,” said Chenette.

Source Name: 
Bloomberg BNA
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