In The News › Report: Nonprofit tax exemption needs more focus

Report: Nonprofit tax exemption needs more focus

Wednesday, March 16, 2011
CityBusiness staff reports

The constitutionally enshrined nonprofit tax exemption needs stricter focus and local jurisdiction, according to a new report by the Bureau of Governmental Research.

The full report expands on positions already taken by BGR, which has formally stated its positions before Mayor Mitch Landrieu’s Tax Fairness Commission. One of BGR’s primary qualms is that the exemption does not require properties to be used exclusively for exempt purposes. As the new report notes, the only constitutional limitation is commercial use “unrelated” to the exempt purpose.

“Courts have interpreted the provision as exempting property used for an array of ancillary commercial uses and property that is idle,” the report states.

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