Follow Through, for the Common Good
Human nature may instruct one to “take your football and go home” when policymakers don’t listen and pass unnecessary legislation. But seasoned nonprofit advocates know to remain engaged at the implementation stage to ensure that the interests of nonprofits and the people they serve are fully represented. That’s the case in Alabama and Montana.
In August, the Alabama Legislature passed a bill requiring nonprofits that are exempt from Alabama sales taxes to obtain an annual certificate of exemption and file annual information reports with the state Department of Revenue, which is given power to set up a new regulatory scheme. To date, there have been no decisions made by the Department of Revenue that outline the reporting requirements, process of reporting, or dates the reporting would begin, leaving nonprofits at a loss for how to prepare and comply with the new reporting duty. The Alabama Association of Nonprofits is working t o coordinate the responses of the nonprofit community and is seeking comments from affected organizations.
The Montana Nonprofit Association, likewise, is coordinating nonprofit responses to rulemaking on a law passed earlier this year requiring all nonprofits with real property to reapply for their property tax exemption in 2016. Compliance is essential because a nonprofit’s reapplication must be received by March 1, 2016 or the nonprofit will be required to pay property taxes for 2016. The state association of nonprofits hosted a special presentation by a key government official at its annual conference to give nonprofits the opportunity to ask questions and identify compliance challenges that the state should consider as part of the rulemaking process. It is also actively encouraging Montana nonprofits to learn about the proposed reporting requirements and share compliance challenges so that the people the nonprofits serve are not adversely affected.
