Skip to main content

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

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

Posted

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@livelylawgroup.com www.USTaxRescue.com 714-708-2593 Mr. Lively is a Certified Tax Specialist by the State Bar of California Board of Legal Specialization. He can be reached at 714-708-2593 or USTaxRescue.com.Any individual seeking legal advice for their own situation should retain their own legal counsel as this response provides information that is general in nature and not specific to any person's unique situation. Circular 230 Disclaimer - Advice given in this response cannot be used to eliminate penalties with the IRS or any other governmental agency.

Mark as helpful

1 found this helpful

1 lawyer agrees

Posted

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-client relationship and I AM NOT providing you legal advice. You should speak with an attorney who is licensed in your state to whom you have provided all the facts, before you take steps that may impact your legal rights--or rights to recovery of damages.

Mark as helpful

1 found this helpful

Tax law topics

Top tips from attorneys

What others are asking

Can't find what you're looking for?

Post a free question on our public forum.

Ask a Question

- or -

Search for lawyers by reviews and ratings.

Find a Lawyer

Browse all legal topics