We recently reviewed a very interesting opinion letter issued by the Alabama Attorney General, interpreting the real estate property tax exemption for charitable organizations in the state. Like most states the law provides that in order to qualify for an exemption, the use of the property must be “exclusively” for its charitable purpose. In this case, a substance abuse treatment center applied for the exemption listing certain rental income. The attorney general’s opinion concluded that receipt of the rental income did not preclude granting the exemption so long as the income was used to further the tax-exempt purpose of the center.
Related news: Fundraising & Nonprofit Report July 2012