Tax Analysts: Short on Revenue, State and Local Governments Turn to Nonprofits
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And in North Carolina, lawmakers and leaders of nonprofits fought a bitter battle last year over exemptions for nonprofits. Ultimately, HB 998 capped nonprofits’ sales tax refunds at $45 million and required them to begin collecting sales and use taxes on admission charges to entertainment activities. Their property, income, and payroll tax exemptions were left intact.
Meg Wiehe of the Institute on Taxation and Economic Policy said that with property tax exemptions proving difficult to alter, repealing the nonprofit sales tax exemption is a newer tactic that states like North Carolina and Oklahoma have undertaken.
“And in North Carolina, lawmakers and leaders of nonprofits fought a bitter battle last year over exemptions for nonprofits. Ultimately, HB 998 capped nonprofits’ sales tax refunds at $45 million and required them to begin collecting sales and use taxes on admission charges to entertainment activities. Their property, income, and payroll tax exemptions were left intact.
Meg Wiehe of the Institute on Taxation and Economic Policy said that with property tax exemptions proving difficult to alter, repealing the nonprofit sales tax exemption is a newer tactic that states like North Carolina and Oklahoma have undertaken.”