Still A Nonprofit, But No Longer Tax-Exempt

In an attempt to avoid new debt and decrease existing budget deficits, many cash-strapped cities and states are levying a host of new fees that don't provide exemption to nonprofits such as churches, schools, and charities.

1 minute read

December 27, 2010, 7:00 AM PST

By Emily Laetz


The newest source of property tax revenue in your community could be your neighborhood church or local hospital. A sign of changing economic times, nonprofit organizations such as places of worship and charities are now being included in many state and local tax pools as governments struggle to find funds to fix crumbling infrastructure and maintain city services.

"Houston's taxpayers in November narrowly voted to adopt a 'drainage fee' to raise at least $125 million a year toward the cost of improving roads and storm-water systems. The city will charge fees to property owners, and it won't grant exceptions to churches, schools and charities."

"The city has been tightening its budget. 'We're cutting up the city's credit cards,' says Mayor Annise Parker. 'Everyone who contributes to drainage issues has to share in the cost of correcting those issues.'"

"At a group called the National Council of Nonprofits, Tim Delaney, chief executive, says, 'Governments are taking their public burdens and putting them on the backs of nonprofits, at a time when the demand for our services is skyrocketing.'"

Monday, December 27, 2010 in The Wall Street Journal

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Get top-rated, practical training

High-rise apartment buildings in Waikiki, Hawaii with steep green mountains in background.

Study: Maui’s Plan to Convert Vacation Rentals to Long-Term Housing Could Cause Nearly $1 Billion Economic Loss

The plan would reduce visitor accommodation by 25,% resulting in 1,900 jobs lost.

April 6, 2025 - Honolulu Civil Beat

Two yellow and white Dallas Area Rapid Transit light rail streetcars at station in Dallas, Texas.

North Texas Transit Leaders Tout Benefits of TOD for Growing Region

At a summit focused on transit-oriented development, policymakers discussed how North Texas’ expanded light rail system can serve as a tool for economic growth.

April 3, 2025 - KERA News

Blue and white Seattle Link light rail train exiting concrete Downtown Bellevue Tunnel in Bellevue, WA.

Why Should We Subsidize Public Transportation?

Many public transit agencies face financial stress due to rising costs, declining fare revenue, and declining subsidies. Transit advocates must provide a strong business case for increasing public transit funding.

April 7, 2025 - Todd Litman

Amtrak Acela

How to Make US Trains Faster

Changes to boarding platforms and a switch to electric trains could improve U.S. passenger rail service without the added cost of high-speed rail.

April 11 - Bloomberg CityLab

Mural showing tools and craft supplies with banner reading 'Things are made here' in front of makerspace in Columbia, Missouri.

Columbia’s Revitalized ‘Loop’ Is a Hub for Local Entrepreneurs

A focus on small businesses is helping a commercial corridor in Columbia, Missouri thrive.

April 11 - Next City

Close-up of wood log with emerald ash borer larvae tracks etched in the wood.

Invasive Insect Threatens Minnesota’s Ash Forests

The Emerald Ash Borer is a rapidly spreading invasive pest threatening Minnesota’s ash trees, and homeowners are encouraged to plant diverse replacement species, avoid moving ash firewood, and monitor for signs of infestation.

April 11 - The Bemidji Pioneer