If you are a tax exempt business do you pay property taxes?

Asked over 1 year ago - Youngstown, OH

If you have a building that was donated to you and you run your non-profit, 501c, tax exempt business from there are you entitled to pay property taxes on that building if so under what circumstances

Attorney answers (2)

  1. Michelle Lynn Marshall

    Contributor Level 13

    Answered . I agree with my colleague that 501c3 refers to income tax, not property tax. However, Ohio does have a charitable exemption land use which exempts certain organizations from property tax. Ohio Revised Code Section 5709.12 discusses this exemption - http://codes.ohio.gov/orc/5709.12. If you believe your organization qualifies for this exemption you should file an exemption application with the tax commissioner - http://codes.ohio.gov/orc/5715.27. The commissioner or auditor may schedule a hearing on the issue and the local board of education will be notified of your application and given the opportunity to oppose it - I would therefore suggest that you retain a local attorney to represent your organization in seeking the exemption. You can search for someone on Avvo or contact your local bar association for a referral. I hope this was helpful, and best of luck to you.

    I am licensed in the State of Ohio, posting a response to your question or issue does not create an attorney-... more
  2. Henry Daniel Lively

    Contributor Level 20

    1

    Lawyer agrees

    1

    Answered . Tax exemption under 501(c)(3) is exemption from Income Tax and not an exemption from property taxes. Property taxes are a state issue and unless your state offers some kind of exemption from property taxes the taxes are owed for property taxes. Also, depending on who gave you the property and how you received it, it could be reassessed for property tax purposes. I suggest you check with a local attorney to review your particular facts. Good luck.

    H. Daniel Lively, Esq., LL.M., CPA Certified Tax Specialist, CA Board of Legal Specialization dlively@... more

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