Wednesday, August 10, 2016

Massachusetts Rejects imposing Property Taxes on Property Acquired by Nonprofits

Mass State SEalFollowing up on David Brennan's previous blog post and thanks to a comment from a reader, I can now report that a conference committee of the Massachusetts legislature removed the provision in a pending economic development bill that would have kept property acquired by nonprofits on the property tax rolls for four years if the property had been taxable before the nonprofit's acquisition. The provision at issue in what was then Bill H.4483 read as follows:

SECTION 127. Chapter 59 of the General Laws is hereby amended by inserting after section 2D the following section:-

2E. Any charitable organization or educational institution otherwise exempt from the payment of property taxes pursuant to section 5 of chapter 59, or any nonprofit charitable corporation or public charity otherwise exempt from the payment of property taxes, that purchases real property that was subject to taxation under said chapter 59 at the time of the purchase, shall pay property taxes on the assessed value of said property for a period of 4 years after the purchase, the amount of said property taxes paid to be phased out as follows: in the first year, 100 per cent of the property tax; in the second year, 75 per cent of the property tax; in the third year, 50 per cent of the property tax; and in the fourth year, 25 per cent of the property tax.

In the final bill, renumbered as Bill H.4569 and currently pending before the governor, this section has been deleted.

Lloyd Mayer

https://lawprofessors.typepad.com/nonprofit/2016/08/massachusetts-rejects-imposing-property-taxes-on-property-acquired-by-nonprofits.html

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