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 Wallstreet Esq. Your Own Question
Wallstreet Esq.
Wallstreet Esq., Tax Attorney
Category: Tax
Satisfied Customers: 585
Experience:  10 years experience
16356563
Type Your Tax Question Here...
Wallstreet Esq. is online now
A new question is answered every 9 seconds

The Ymca is a 501c3 non-profit organization in Pa. There is

Customer Question

The Ymca is a 501c3 non-profit organization in Pa. There is one located in Havertown, PA. Are they exempt from paying real estate taxes. They are leasing a property in Havertown they do not own the property or building
JA: The Accountant will know how to help. Is there anything else the Accountant should be aware of?
Customer: no
Submitted: 8 months ago.
Category: Tax
Expert:  Lane replied 8 months ago.

Hi. My name's Lane ... I can help here.

...

Yes, 501(c)(3)'s are, generally, exempt from paying property taxes.

...

In Pennsylvania, an agency is exempt only if it is a "purely public charity," which is stated in the Pennsylvania Constitution. To qualify as a "purely public charity" under Pennsylvania law, an organization must:

1) Advance a charitable purpose; 2) donate or render gratuitously a substantial portion of its services; 3) benefit a substantial and indefinite class of persons who are legitimate subjects of charity; 4) relieve the government of some of its burden; and 5) operate entirely free from private profit motive.

....

But property taxes are paid by the owner, so if you are asking about a lease that passes the property tax liability through to the tennant, in THIS case it's very possible that the non-profit WOULD pay th property ax as a part of its lease. ... becasue the Owner is NOT exempt, and the property tax is just one component of the lease cost.

Related Tax Questions