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Nonprofit Fees

Submitted by cnp_admin on Tue, 01/13/2015 - 9:52pm

Every state exempts some or all of the properties owned by charitable nonprofits from property taxes. However, despite a lack of legal authority to do so, some municipalities attempt to impose discriminatory taxes or fees on nonprofits, or demand so-called “voluntary” payments in lieu of taxes (PILOTs). Different jurisdictions call the assessment different terms – taxes, fees, or PILOTs – but the goal is the same, to divert nonprofit resources away from mission and into government coffers.

Nonprofit Fees

  • North Dakota: The Jamestown, North Dakota City Council is considering a new stormwater fee [1] to be applied to all properties, including property owned by nonprofits, churches, parks, and governments. The City itself would be expected to pay $3,150 per month under the proposed plan. The new fee would be assessed based on the size of the commercial property and $3 per month for residential. The ordinance creating the stormwater utility fee program passed unanimously on July 1, but the resolution adopting the fee structure has yet to be adopted. (7/15/2019)
  • South Carolina: The City Council for Columbia, South Carolina, reportedly is considering a number of measures to overcome a potential multimillion-dollar shortfall in next year’s budget, including imposing fees on nonprofits [2]. The state constitution prohibits imposing property taxes on nonprofits, so local lawmakers are considering changing the city’s business license ordinance to remove exemptions for nonprofits. (6/3/2019)

Additional Resources

  • From the Fault Line on Nonprofit Property-Tax Exemptions, [3] David L. Thompson, National Council of Nonprofits Blog, February 9, 2015.
  • How Will Chicago’s New Water Fees Impact Your Nonprofit [4], Donors Forum (2013)
  • The Charitable Property-Tax Exemption and PILOTs [5], Urban Institute (2012)
  • Squeezed Cities Ask Nonprofits for More Money [6], New York Times (2011)
Categories: 
State & Local Policy Issues [7]
Tags: 
Fees [8]
Taxes [9]
Service Fees [10]
Water Fees [11]

Source URL: https://www.councilofnonprofits.org/trends-policy-issues/nonprofit-fees

Links
[1] https://www.jamestownsun.com/news/government-and-politics/2987755-Stormwater-utility-fee-hits-governments-nonprofits
[2] https://www.postandcourier.com/free-times/news/local_and_state_news/city-debates-public-safety-fee-seeking-funds-from-nonprofits-to/article_92daf7c4-7cb4-11e9-80b2-633e104dc086.html
[3] https://www.councilofnonprofits.org/thought-leadership/the-fault-line-nonprofit-property-tax-exemptions
[4] https://www.councilofnonprofits.org/sites/default/files/documents/IL%20Nonprofit%20Water%20Fees%20FAQ.pdf
[5] https://www.urban.org/publications/412640.html
[6] https://www.nytimes.com/2011/05/12/us/12nonprofits.html
[7] https://www.councilofnonprofits.org/trends-policy-issues-categories/state-local-policy-issues
[8] https://www.councilofnonprofits.org/trends-policy-issues-tags/fees
[9] https://www.councilofnonprofits.org/trends-policy-issues-tags/taxes
[10] https://www.councilofnonprofits.org/trends-policy-issues-tags/service-fees
[11] https://www.councilofnonprofits.org/trends-policy-issues-tags/water-fees