[Vision2020] Tax abuse rampant in nonprofits

[Mark Solomon]

Mark,

Moscow/Latah County is unique in Idaho for it's 
ratio of tax exempt to tax paying properties due 
to the presence of the UI. Most counties of 
similar size have more or less the same amount of 
"other" tax exempt properties (hospitals, 
churches, government agencies, etc). While I'm 
not current on the tax mills assessed in 
neighboring Nez Perce County (similar population 
#), their mill (Potlatch) is on the books and 
ours (UI) is off the books. While serving as 
county commissioner, I started to raise the 
discussion at the state level regarding a state 
version of the federal Payment in Lieu of Taxes 
program that pays (by formula) counties some 
amount of $$ to offset the tax exempt status of 
federal public lands.

The counter argument is that the presence of the 
UI  plus the transfer payment of state dollars 
for UI support that is recirculated in the local 
economy, its staff and their individual property 
tax payments should be enough to offset the tax 
exempt properties.

Mark Solomon



At 8:00 PM -0700 4/6/05, Mark Seman wrote:
>I don't know how it could be accomplished, but I'd love to see all tax
>exemptions abolished and a proper distribution of the resulting tax dollars.
>I have a sense that most tax exempt entities do not provide a comparable
>community benefit to offset tax "losses".  Even if a governmental agency is
>taxing itself (State, County, Federal, UI, USPO, etc.) - I'd prefer to have
>them taxed and the revenues distributed in a revamped system.  I'm curious
>as to whether this would prove to be beneficial for a greater good or just a
>shift of burden from current paying entities at the expense of current
>exempt entities.  Maybe Moscow is unique with its overly burdened tax payer,
>but what would be the negatives that cancel the benefits of a more evenly
>distributed tax burden?  Perhaps an economist or others can weigh in on this
>and provide me with better insight?
>
>Mark
>
>Mark Seman, Architect
>Heather Seman, Landscape Architect
>1404 East 'F' Street  Moscow, Idaho 83843
>v 208-883-3276 / f 208-883-0112
>
>
>
>-----Original Message-----
>From: vision2020-bounces at moscow.com
>[mailto:vision2020-bounces at moscow.com]On Behalf Of Ron Force
>Sent: Wednesday, April 06, 2005 3:09 PM
>To: vision2020 at moscow.com
>Subject: [Vision2020] Tax abuse rampant in nonprofits
>
>
>Tax Abuse Rampant in Nonprofits, IRS Says
>
>By Albert B. Crenshaw
>Washington Post Staff Writer
>Tuesday, April 5, 2005; Page E01
>
>...Everson raised particular concerns about nonprofit hospitals and how hard
>it is to distinguish them from for-profit hospitals; political activity by
>nonprofits; misuse of entities set up to allow religious leaders to hold
>property and conduct business for the benefit of a religious organization;
>and deals designed to allow members of a tribe to benefit from gambling
>revenue without owing taxes...
>
>http://www.washingtonpost.com/wp-dyn/articles/A26388-2005Apr4.html
>
>
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