View Single Post
Old 09-03-2008, 09:06 PM   #32
Fred Little
Dojo: NJIT Budokai
Location: State Line NJ/NY
Join Date: Apr 2001
Posts: 632
Re: Non-Profit Dojo?

Dan O'Day wrote: View Post
Does anyone know whether all non-profits, like churches, get a free ride on property taxes?

. Seeing as I could just start a Church of the Retired Deadhead and save $6,000.00 a year.
Minneapolis has fairly liberal laws in this regard, and the answer according to the city's website is:

Probably not, unless you are an exceptionally motivated and detail-oriented Retired Deadhead with uncommon persistence:

What is, and how do I apply for, a non-profit or 501(c)(3) property tax exemption?

Organizations seeking 501(c)(3) exemption must file an exempt application for each parcel that may qualify. In order to receive exempt status, there must be a concurrence of ownership and use. The parcel must be used solely for the specified purpose for which the institution received its 501(c)(3) charter. This means that if the land, its improvements, or any part thereof is not used in accordance with stated purposes, the exemption will be reviewed and the ineligible property or portion of the property will be assessed for property taxation purposes. In accordance with Minnesota statutes, "Upon written request of the assessor, the taxpayer filing a statement of exemption shall make available to the assessor all books and records relating to the ownership or use of the property which are reasonably necessary to verify that the property qualifies for exemption."
501(c)(3) Applicant must provide proof to establish the following:

* Ownership - Deed and date (property owned prior to July 1 may qualify for exemption in the current assessment year)
* Use - Descriptions: pamphlets, brochures, letter explaining the function of the entity and how the property is being used
* 501(C)(3) of the Internal Revenue Code - Federal Certification of Non-Profit or Exempt Status from Federal Income Taxes
* Articles of Incorporation - Eventuality of Corporate Dissolution
* Synopsis of Organizational Function - Mission Statement and Organizational Purpose; Who are your clients?
* Minnesota Form 990 Income Tax Return - Who pays for the services provided by the organization?
* Occupants - Tenant lists, rent roles, outlining square footage, etc…
* Property Tax Application -- a document completed by applicant and submitted with supporting documentation for exemption.
Emphasis added.


  Reply With Quote