Tremors through the not-for-profit world in that a Minnesota Supreme Court found that a small non-profit day care had to pay property taxes because, "in essence, it gave nothing away".
"There is growing confusion over what constitutes a charity. More and more nonprofit operations look more like businesses, charging fees and selling products and services to raise money."
Does a nonprofit hospital give enough charity to earn a tax exemption?
Local governments are in need of additional funds and the number of need funds. They are going after the $8 to $13 billion annually charities cost local governments in annual property tax exemptions. The idea behind the tax exemption is that the nonprofit organizations provide a public service or substantially reduce the burdens of government. Property tax exemptions are set by individual states.
The question remains - what is a nonprofit? How many true nonprofits do we have in Camp County? How many are not paying local property taxes because they are hiding behind the nonprofit shield?
Tax-exempt groups are receiving a bit more scrutiny by all who assess, value property for taxes, and collect taxes.
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