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Lev, Tax Advisor
Category: Tax
Satisfied Customers: 29971
Experience:  Taxes, Immigration, Labor Relations
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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
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Customer: yes
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Submitted: 1 year ago.
Category: Tax
Expert:  Lev replied 1 year 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 1 year 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

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.

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

Expert:  Lev replied 1 year ago.

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