How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Lev Your Own Question
Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 28082
Experience:  Taxes, Immigration, Labor Relations
870116
Type Your Tax Question Here...
Lev is online now
A new question is answered every 9 seconds

Name is ***** *****.. Is a 501c3 exempt from paying property

Customer Question

Customer: Name is ***** *****.. Is a 501c3 exempt from paying property taxes on their building? We have no paid employees just volunteers. The sole mission of the organization is to give back to the community the heritage of the community and tours of the historic homes. Our income comes from donations dues and caretaker apartment rental income to a single. We just break even with our expenses when you include the caretaker rental income. thanks
JA: Thanks. Can you give me any more details about your issue?
Customer: The issue is the caretaker rental income does that place our organization in jeopardy in the state of NJ and local town. Would we have to pay property taxes because we receive rental income
JA: OK got it. Last thing — JustAnswer charges a fee (generally around $32) to post your type of question to Tax Experts (you only pay if satisfied). There are a couple customers ahead of you. Are you willing to wait a bit?
Customer: yes
JA: OK. Now I'm going to take you to a page to place a secure deposit with JustAnswer. Don't worry, this chat is saved. After that, we will finish helping you.
Submitted: 10 months ago.
Category: Tax
Expert:  Lev replied 10 months ago.

property taxes are regulated by state tax laws and each state has different requirements.
However most states require special application to have that exemption.
Let me know your state and I will verify.

Expert:  Lev replied 10 months ago.

Specifically for NJ - The New Jersey tax laws include provisions that exempt qualifying nonprofit organizations and government entities from paying tax.

For information on exemption from Local Property Tax for qualifying nonprofit use of real property, contact the Tax Assessor in the corresponding municipality.

Here is the form to use

http://www.state.nj.us/treasury/taxation/pdf/other_forms/lpt/initialstment.pdf

Property must be owned by the organization claiming exemption

Use must be a qualifying exempt use. Property’s use must be an integral part of the exempt organization’s operations, not just a convenience, and reasonably necessary for the proper and efficient fulfillment of the organization’s exempt purpose.

Federal 501(c)(3) status is not controlling with respect to New Jersey property tax exemptions.

Following article provide references to NJ laws and regulations regarding property tax exemptions.

http://www.skoloffwolfe.com/articles/RealPropertyExemption.pdf

however - to get such exemption - your organization woudl need to apply.

Expert:  Lev replied 10 months ago.

I appreciate if you take a moment to rate the answer.

Experts are ONLY credited when answers are rated positively.

If you still have any doubts, need clarification - please be sure to ask.
I am here to help you will all tax related issues.

Related Tax Questions