The New York Times reports that Maine is considering legislation that would make it the first state to impose property taxes on hospitals, private colleges and summer camps.  The article begins as follows:

Nonprofit organizations across the country are closely watching Maine as it considers becoming the first state to impose property taxes on hospitals, private colleges and summer camps under a plan put forth by Gov. Paul LePage.

Mr. LePage’s proposal has sparked a fiery debate over what impact nonprofits have on their communities and whether they should have to cover the costs for municipal services they receive.

David L. Thompson, vice president of public policy for the National Council of Nonprofits, said all states exempted nonprofits from property taxes, either through laws or their constitutions.

Mr. LePage, a Republican, has called nonprofits “takers, not givers,” and argues that they need to contribute for services like the police, firefighters and snow removal. His proposal, which is part of his $6.3 billion budget plan, would require organizations to pay taxes to municipalities if their properties were worth more than $500,000. They would pay taxes only on the property value over that threshold and get a 50 percent discount on the rate.

Read full article at Maine Considers a Property Tax on Some Nonprofits – NYTimes.com.

 

Posted by Lewis J. Saret, Co-General Editor, Wealth Strategies Journal.