An Act Concerning the Taxation of Property Owned by Certain Nonprofit Organizations
Sec. 1. 36 MRSA §652, sub-§1, ¶H, as amended by PL 1979, c. 467, §6, is further amended to read:
Further conditions to the right of exemption are that:
(1) No A director, trustee, officer or employee of any organization claiming exemption shall may not receive directly or indirectly any pecuniary profit from the operation thereof of the organization, excepting reasonable compensation for services in effecting its purposes or as a proper beneficiary of its purposes;
(2) All profits derived from the operation thereof of the organization and the proceeds from the rental or sale of its property are devoted exclusively to the purposes for which it is organized; and
(3) The institution, organization or corporation claiming exemption under this subsection shall file with the tax assessors upon their request a report for its preceding fiscal year in such detail as the tax assessors may reasonably require.
summary
Current law exempts from property tax real estate and property owned by a fraternal organization that is used solely by the organization for the purposes for which it is organized. This bill exempts real estate and property that the organization rents as long as the income derived from the rental is used exclusively for the organization's charitable purposes.