Tax advisory commission report could have major impact on not-for-profit organizations.

FYI for discussion.  Not a possition of the Democratic Party

Does anyone know anything about the following?  It looks like it could have a major impact on Non-profits who own land.  What is the impact on Land Trusts?


Nonprofits and the public have until Monday, Jan. 9, to appeal a recommendation to repeal the City of Honolulu real property tax exemption now enjoyed by nonprofit organizations.

City Council Chair Ernest Martin accepted a report from the Tax Advisory Commission that recommends nonprofits pay real property tax but asked the commission to keep the record open and to accept public testimony for 30 days ending Jan. 9.

The commission, a citizen advisory group created by the Honolulu City Council through a resolution passed in June, reviewed real property tax exemptions and submitted its draft recommendations to the council. Click here to read more.

Regarding nonprofits, the commission recommended: “… those entities which currently are totally exempt because they tend to be nonprofit in nature be subject to a levy of the real property tax albeit at a percentage less than full market value in recognition of the community benefit they provide. Such impost should be based on a percentage of the fair market value utilized for the exempt activities.”

My views, as the sole commission member who supported no change to the current tax rate, which is a $300 minimum tax for 501(c)(3) entities, are included in the report — click here to download a copy. It’s now up to nonprofits to echo and support HANO’s opposition.

Today, when demand for nonprofit services is increasing and resources are declining, is not the time to increase the financial burdens of nonprofits, many of which are providing services formerly provided by government. We expect more reasonable views will prevail, but the City Council must hear a clear unified voice from our sector by Jan. 9.

Happy New Year,

Lisa Maruyama
HANO president and CEO

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