Nonprofits receive reprieve on property tax issue
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Nonprofit groups in Minnesota have gotten a one-year reprieve on the question of whether they might have to pay taxes on the property they own.
A tax bill that recently became law includes a one-year moratorium that prevents tax assessors from making any changes this year.
The groups were worried, because the state Supreme Court ruled last year that a Red Wing daycare center does not qualify as a nonprofit, and must pay property taxes.
Marcia Avner, with the Minnesota Council of Nonprofits, said forcing charities to pay property taxes does not make sense. She notes that government agencies contract out many services to nonprofits.
"Government may be supporting some of the services; they don't intend that money to get rolled back into taxes, they expect it to go to provide the services," Avner said.
Avner said the one-year moratorium will give lawmakers time to clarify the issue next session.
The matter could affect Minnesota Public Radio, which owns tax-exempt land across the state for offices and radio towers for its 37-station network.
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