Nonprofit Community Service Organizations - 4C(3)(ii)
The 2008 Legislature amended the law to allow a new classification, 4C(3)(ii), for community service organizations such as VFWs, Elks, American Legions, Knights of Columbus and other similar organizations. The change expands the 4c property classification for nonprofit community service-oriented organizations that make charitable contributions and donations at least equal to the organization's previous year's property taxes and that allow the property to be used for public and community meetings or events at no charge, as appropriate to the size of the facility.
This portion of class 4c will have a class rate of 1.5 percent and be subject to the state general tax at the seasonal-recreational rate, which is about half of the commercial-industrial tax rate.
Under current law, real property up to a maximum of one acre that is owned by a nonprofit community service-oriented organization qualifies for class 4c if the property is not used for revenue producing activity for more than six days in the calendar year preceding the year of the assessment. A new, second option, extends the maximum land size to 3 acres, primarily to allow for parking lots, ball fields, etc.
Property may qualify for class 4c(3)(ii) and the corresponding class rate if:
- It is owned by a "nonprofit community service oriented organization."
- It is not used for residential purposes on either a temporary or permanent basis.
- The organization makes annual charitable contributions and donations at least equal to the property's previous year's property taxes (excluding the state general tax).
- The property is allowed to be used for public and community meetings or events free of charge.