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Nonprofit Property Tax

Nonprofit organizations rely on property and sales tax exemptions to provide vital services to their clients, many of whom are those most in need. However, due to a 2009 Court decision regarding GCN member Nuçi’s Space in Athens, Georgia, changes to the definition of "organizations of purely public charity" could have had drastic effects on many nonprofits' ability to receive these tax exemptions.

On November 8, 2010 the Georgia Supreme Court decided in favor of Nuçi's Space in the Nuci Phillips Memorial Foundation, Inc. v. Athens Clarke County Board of Tax Assessors. Nuçi's Space can now claim its exemption and use funds currently supporting local property tax to serve the mental health needs of its constituents. The decision also served to clarify conflicting interpretations of the code relative to tax exemptions on the use of nonprofit property for revenue generation in charities.

 

News & Updates

11/8/2010  Supreme Court decision favorable to nonprofits seeking tax exemption

7/28/2010 ― Does your nonprofit own property? If so, some tax breaks you currently enjoy may be in jeopardy

3/27/2010 ― Local property tax challenges threaten all Georgia nonprofits

 

Additional Court-filed Documents

Georgia Code ‐ Revenue and Taxation ‐ Title 48, Section 48‐5‐41
Excerpted from the state code defining property taxes exemption qualifications.

GCN's Amicus Brief
GCN submitted this document explicating its position in defense of Nuçi's Space.

Assessor's Supplemental Brief
Athens-Clarke County's petition against Nuçi's Space's expemtion qualification under the above section of the Georgia Code.

Final Court Decision
The official court-released decision in favor of Nuçi's Space from 11/08/2010.

Property Tax Exemption Briefing for Nonprofits
This briefing for nonprofits provides an overview of the Nuçi case and provides a framework for moving forward on the issue of property tax exemption.