1. Indiana Property Tax Concerns for Nonprofit and Exempt Organizations and Affordable Housing?

Government has long recognized the importance of the work of nonprofit charitable organizations and the provision of affordable housing by providing exemptions and lower property tax assessments for certain public purposes.

The Internal Revenue Code defines organizations and their activities that are exempt from income taxes and those organization that are eligible to receive tax-deductible contributions. Indiana law recognizes federal law for the purpose of granting exemptions for Indiana sales and income taxes, but sets different, but similar, criteria for property tax exemption. Under Indiana law, property must be owned, occupied and predominately used for a charitable purpose to be exempt from property tax.

In the face of declining tax revenues, challenges are surfacing to the definitions of which organizations and which properties should be exempt from taxation or receive benefit for a public purpose.

The Indiana Association for Community Economic Development (IACED) is conducting this survey to understand how several kinds of property tax issues are impacting members.

This brief survey will help IACED understand the issues impacting its members, advocate for more effective public policy solutions, and deliver valuable training and technical assistance.

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* 1. Is your organization an IACED member?

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* 2. Is your organization designated as a charitable organization by the Internal Revenue Service?

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* 3. Is your organization concerned about property tax issues?

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* 4. How much money has been spent or do you expect to spend on expenses dealing with property tax concerns for the organization or an affordable housing project?

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* 5. Is your community considering imposing user fees to replace property tax revenue?

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* 6. Has your charitable organization or affordable housing project been asked to make a payment in lieu of taxes (PILOT)?

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