Thursday, June 7, 2012

Hundreds Of NYC Nonprofits Lose Tax Exemptions

New York City is pulling the property tax exemptions of 925 nonprofits after they couldn't prove they deserved them in a city survey, according to a new report in The New York Post.

The Finance Department said that its actions will begin on July 1. The survey it conducted was designed to determine which nonprofits were gaming the system and which actually deserved the waivers. The outreach came in the form of warning letters to organizations that were in danger of losing tax exemption and in-person visits by assessors.

American Youth Hostel (AYH) is one of the 925 organizations that will be seeing increases in their taxes. A city official told The Post that the organization was not carrying out its mission. AYH plans to appeal the ruling, arguing that it has been registered as a nonprofit since 1934.

The United Jewish Appeal (UJA) will be seeing its exemption reduced from 100 percent to nine percent, as it rents out a large portion of its midtown offices for commercial purposes. UJA does not plan to argue the ruling.

These organizations will not be the only ones having bigger bills from the government. A recent report by The NonProfit Times found that 63 percent tax exempt institutions end up paying some form of fees in the form of payments in lieu of taxes (PILOTs). These are usually applied to larger nonprofits.

You can read the full story in The New York Post.

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