David L. Thompson, vice president of public policy for the National Council of Nonprofits, has seen many legislative efforts over the years for states or municipalities to extract money from nonprofits and other tax-exempt entities.

A "vast majority" of nonprofits work with less than 60 days' worth of money in reserve, and "any extra money (in payments) means something gets cut," he said. The council argues that municipalities have no right to tax or require fees from nonprofits.