Tuesday, February 6, 2018

Taxing Nonprofits: Is It the Modern Day Solution to Balancing Budgets?

In this article Kelly Phillips discusses several cities’ decisions to tax nonprofit corporations. She details a Rhode Island Mayor’s decision to tax nine previously tax-exempt hospitals, colleges, and universities to raise revenue. She begins by outlining how public perception of taxing nonprofits at the local level is usually viewed negatively because the public believes that since nonprofits do so much good for the community they shouldn’t have to pay taxes. She then begins to discuss how even though nonprofits are tax-exempt from federal income taxes, they can be taxed at the local level. Also, she points out that, to the extent that the nonprofit has income that is not related to its charitable purpose, income can be taxed. To learn more about the rise in cities’ attempts to tax nonprofits, click here: https://www.forbes.com/sites/kellyphillipserb/2011/05/11/taxing-non-profits-is-it-the-modern-day-solution-to-balancing-budgets/#2d2dd6167290




| Permalink


Post a comment