{"componentChunkName":"component---src-templates-blog-post-ts","path":"/a-not-for-profit-is-not-always-eligibile-for-property-tax-exemptions/","result":{"data":{"site":{"siteMetadata":{"title":"Clausehound Blog","author":"Joshua Koudys"}},"markdownRemark":{"id":"af81d6c6-059a-5b6f-9300-db274493324d","excerpt":"Status as a not for profit corporation does not automatically qualify a corporation for exemption from property taxes. The legal tests vary from jurisdiction to…","html":"<p>Status as a not for profit corporation does not automatically qualify a corporation for exemption from property taxes. The <em>legal tests</em> vary from jurisdiction to jurisdiction, and may vary between <strong>property tax and income tax legislation</strong>. Some jurisdictions may require restrictions on business activities and associations as part of the legal test for tax exemptions.</p>\n<p>In this article, a medical center in New Jersey failed to meet the requirements/legal test of a non-profit organization for property tax purposes. A tax court Judge ruled that a medical center in New Jersey should pay property taxes on virtually all of its 40-acre property in town. Central to the decision was the judge’s observation that the not for profit hospital also had “labyrinthine corporate structures, intertwined with both non-profit and for-profit subsidiaries and unaffiliated corporate entities.”</p>\n<p><a href=\"http://www.nj.com/morris/index.ssf/2015/06/morristown_medical_center_loses_tax_case_raising_f.html\" target=\"_blank\" rel=\"nofollow noopener\">Read the article here.</a></p>\n<h3>Takeaway:</h3>\n<ul>\n<li>Not for profit corporations that are intertwined with for-profit corporations may not be eligible for property tax exemptions in some jurisdictions.</li>\n</ul>","frontmatter":{"title":"A Not for Profit is Not Always Eligibile for Property Tax Exemptions","date":"December 05, 2015","description":"Status as a not for profit corporation does not automatically qualify a corporation for exemption from property taxes.","author":{"id":"rajah@cobaltcounsel.com","first":"Rajah","last":"Lehal","bio":"Rajah Lehal is Founder and CEO of Clausehound.com.  Rajah is a legal technologist and technology lawyer who is, together with the Clausehound team, capturing and sharing lawyer expertise, building deal negotiation libraries, teaching negotiation in classrooms, and automating negotiation with software.","image":{"childImageSharp":{"fluid":{"base64":"data:image/jpeg;base64,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","aspectRatio":1,"src":"/static/d7bbad08c257f3987a4a5710553e9e17/bdd4d/Rajah.jpg","srcSet":"/static/d7bbad08c257f3987a4a5710553e9e17/2b9ee/Rajah.jpg 80w,\n/static/d7bbad08c257f3987a4a5710553e9e17/e5d64/Rajah.jpg 160w,\n/static/d7bbad08c257f3987a4a5710553e9e17/bdd4d/Rajah.jpg 320w,\n/static/d7bbad08c257f3987a4a5710553e9e17/6e63d/Rajah.jpg 400w","sizes":"(max-width: 320px) 100vw, 320px"}}}},"tags":["Corporation Type","Not for Profit Articles of Incorporation","Company Formation","Rajah"]}}},"pageContext":{"slug":"/a-not-for-profit-is-not-always-eligibile-for-property-tax-exemptions/","previous":{"fields":{"slug":"/property-powers-of-attorney-why-you-need-one/"},"frontmatter":{"title":"Property Powers of Attorney - Why You Need One","tags":["Long Form","Business","Commercial Activities"],"author":{"id":"info@clausehound.com","first":"","last":null}}},"next":{"fields":{"slug":"/protect-your-goodwill-register-your-trademark/"},"frontmatter":{"title":"Protect Your Goodwill - Register Your Trademark!","tags":["Intellectual Property","Long Form","Trademark Registration","Ownership of Intellectual Property","Commercial Activities","frahman"],"author":{"id":"frahman@cobaltcounsel.com","first":"","last":null}}}}}}