An act relating to the property taxation of nonprofit organizations providing demonstration farms with research and extension facilities, public agricultural museums, and educational tour sites. Brief Summary of Bill Exempts demonstration farm and related facilities from property taxation if owned by a nonprofit organization and used by a state university for agricultural research and education programs. Provides that new property tax exemptions for nonprofit organizations will be subject to standard restrictions on the use of the property, unless exempted in the act creating the new exemption.
All property is subject to property tax unless specifically exempted by statute.
Most property tax exemptions for nonprofit organizations are subject to a group of standard conditions in a separate section of law. These conditions restrict the use of the property to exempt purposes, with certain exceptions. The property must be irrevocably dedicated to the purpose for which the exemption was granted. Leased property is not required to be irrevocably dedicated if the nonprofit organization receives the benefit of the property tax exemption under the terms of the loan or rental agreement. Facilities must be made available without regard to race, color, national origin, or ancestry.