Exemption from real estate tax is a crucial benefit to qualified nonprofits, allowing them to reallocate those dollars to other expenses of their nonprofit missions.
Becoming exempt from real estate taxes in Pennsylvania requires an appeal to the Board of Assessment Appeals and the meeting of criteria under Pennsylvania, like the Purely Public Charity Act, 10 P.S. § 371, et seq. (the “Act”). The granting of exemption is often a relief to nonprofits working with small budgets relying on funding by the government, donors and grants.
Since June 2024, York County has been circulating Tax Exemption Questionnaires to local nonprofits to evaluate exemption status, which are due by July 31, 2024. The questionnaires inquire about, amongst other items, the use of the property, revenue gained by the organization at the property, and how the use of the property meets the criteria under the Act. It is critical that the questionnaire is returned on time, and the answers to the questions meet the requirements under the Act, or the nonprofit could be at risk of losing its tax-exempt status.
If you are a York County nonprofit organization, be on the look-out for your questionnaire. Furthermore, if you have any questions about the questionnaire, or the requirements under the Act, please contact attorneys Justin A. Tomevi or Katelyn E. Rohrbaugh.
