The Nonprofit Margin: Addressing the Costs of the Nonprofit Exemption in New Orleans

Source: Bureau of Governmental Research, March 2011

From the press release:
The report examines the impact of the nonprofit exemption on government
finances and tax rates and various approaches for mitigating that impact….The report explores a full array of options, including elimination of the exemption. Ultimately, it recommends establishing a more restrictive framework for exemptions; improving administration; taxing nonprofits at a reduced level; and imposing service charges….The report explores four options: voluntary payments of lieu of taxes, or PILOTs, from nonprofit institutions; a state program to reimburse local governments for revenue lost due to nonprofit exemptions; taxing nonprofit-owned property at a reduced level; and service fees.
Related:
New Orleans mayor abandons for the coming year efforts to make some nonprofit groups pay property taxes
Source: Mark Schleifstein, The Times-Picayune, December 20, 2011

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