Massachusetts-based eligible charitable organizations are permitted exemptions for certain personal and real property. Organizations should be preparing now to file the Massachusetts "Return of Property Held for Charitable Purposes" (State Tax Form 3ABC).
The mandatory form provides a full or partial tax property tax exemption for an organization’s real or personal property so long as the organization files it no later than March 1, 2018. It is due at the Assessor's Office in each city or town in which your organization owns personal and/or real property on January 1 in order to receive a local tax exemption on that property for the fiscal year that begins the next July 1.
Who Must File?
All benevolent, literary, temperance or scientific organizations or trusts that own property are eligible for the exemption. Public charitable organizations face an additional reporting requirement; they must submit along with their Form 3ABC a “true copy” of their current Public Charities Division of the Office of the Attorney General report, Form PC. An exception to this provision exists for religious, fraternal and veteran organizations, which are not required to file the Form PC.
Failure to file the property tax exemption form comes with heavy penalities. Not only will property held by the organization be subject to tax, but also any property that previously received an exemption will be subject to tax. If an organization does not file a timely and complete return by March 1, a not-for-profit organization risks losing its tax-exempt status on its real or personal property for that year. The board of assessors may extend the filing deadline if the organization submits a written request and demonstrates a good reason for not filing on time.
For More Information
For information about how you can meet your compliance requirements related to Form 3ABC, please contact us here.
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