Print Page   |   Contact Us   |   Sign In
News & Press: Legislative Update

ADVOCACY ALERT: Tax Exempt Status for Non-Profits

Friday, September 19, 2014   (0 Comments)
Posted by: Kasia Roelant
Share |

Several LeadingAge Michigan Members are having difficulties with local tax assessor recognition of tax exempt status. In many regions, the law is unclear and has caused members to resort to the tax tribunal at times, and in other cases members have been treated as tax exempt without question.

It may be that MCL 211.70 Subsection (8) -Property Tax Act- is the source of the problem. This section specifies that a nonprofit corporation must meet three criteria to be granted tax exempt status. First they must be certified by the IRS as a not for profit corporation. Second they must be licensed by the state as a skilled nursing facility or a home for the aged. The third criteria is where the problem occurs. It states that one of the follow two criteria must be met:

  • “The real and personal property of the nonprofit corporation was being treated as exempt from the collection of all taxes under this act on the effective date of the amendatory act that added this subsection.”
  • “The real and personal property of the nonprofit corporation had been treated as exempt from the collection of all taxes under this act on December 31, 2004 and there has been no transfer of ownership of that property during the period of time beginning the last day the property was treated as exempt until the effective date of the amendatory ace that added this subsection. As used in this sub-paragraph, ‘transfer of ownership’ means that term defined in section 27a.”

In June, Representative Ken Yonker introduced House Bill 5616 to provide clarity in and around the December 31, 2004 date. Members from Baruch Senior Ministries were in attendance at the September 17 Tax Policy hearing to testify in support of this important legislation. LeadingAge Michigan fully supports HB5616 and anticipates a Committee vote on September 24th.


201 N Washington Square, Suite 920
Lansing, MI 48933
Phone: 517-323-3687
Fax: 517-323-4569

Our Mission: To advance the mission of our members to enhance the lives of seniors.
Our Vision: To become the voice of aging services in Michigan.

©LeadingAge Michigan 2013. All Rights Reserved

Association Management Software Powered by YourMembership  ::  Legal