Pittsburgh Announces Audit of Nonprofit Property Tax Exemptions

In late January, the city of Pittsburgh Mayor Ed Gainey announced that it will review whether the cities many nonprofits qualify for property tax exemption. The call notes that about one third of city property is exempt from taxation.

From the story:

"Mayor Ed Gainey signed an executive order Tuesday, allowing the finance and law departments to start looking into charitable organizations.

City leaders said the biggest concern is one-third of the City of Pittsburgh property is exempt, and the city loses millions of dollars. Now non-profit organizations must pass the Pennsylvania Purely Public Charity test.

Mayor Ed Gainey said, among the requirements, the organization must advance a charitable purpose, operate entirely free from a private profit motive and donate a substantial part of its services.

Mayor Gainey said this does not include religious institutions. However, this could impact certain health systems, universities and other organizations."

Here is a report from 2022 on the tax exempt properties in Pittsburgh. Pittsburgh conducted such a review ten years ago in 2013.

Philip Hackney

Feb. 12, 2023