Supreme Court Decision May Threaten Nonprofit Property Tax Exemptions
Thursday, December 13th, 2007MCA
Minnesota Citizens for the Arts
2233 University Ave. W. #355
St. Paul, MN 55155
651-251-0868 fax 651-917-3561
staff@mncitizensforthearts.org
www.mncitizensforthearts.org
Arts Action Center
December 10, 2007
1. Supreme Court Decision May Threaten Nonprofit Property Tax Exemptions
2. Duluth City Council Upholds Percent for Art
3. Give the Gift of Arts Advocacy
4. Event Reminders from MCA: Advocacy Day Registration Now Available On-line
——————————————————————-
1. Supreme Court Decision May Threaten Nonprofit Property Tax Exemptions
Minnesota has long relied on a six part test, called the North Star Test, to determine if nonprofits that own property are eligible for property tax exemption. On Thursday, the Minnesota Supreme Court appears to have very narrowly construed the property tax exemption for charitable institutions to a single one of these six factors: An organization that does not provide goods or services free or at considerably reduced rates as a substantial, not just an incidental, part of its operations is not exempt from payment of real property taxes as an institution of purely public charity. The Court ruled that a Red Wing day care center is not eligible for the property tax exemption because it doesn’t discount its rates.
You can read the decision here: http://www.mncourts.gov/opinions/sc/current/OPA070468-1206.htm
MCA has met with leaders from other nonprofits to look at the decision and see what it may mean for nonprofits of all kinds in the state and how we can respond. We will get you more information as it becomes available.
——————————————————————-
2. Duluth City Council Upholds Percent for Art
From the Duluth News Tribune – 12/04/2007
Council upholds arts funding
WHAT THEY DID: Voted down a proposed ordinance that would have deleted the primary funding mechanism for the Public Arts Commission.
WHAT IT MEANS: Under the City Charter, whenever the city constructs a new building, the city has to match 1 percent of those costs and put them in the commission’s coffers. Arts Commission members said previous funds have gone toward purchasing or commissioning many of the city’s most famous sculptures, including the Determined Mariner in Canal Park and the Clayton Jackson McGhie Memorial at Second Avenue East and First Street. The commission said that if the funding were to go away, the commission probably would dissolve as well.
Councilors who opposed the ordinance said that arts were too valuable to Duluth to cut. “This is a pretty simple way for our community to express our shared value and appreciation of art,” said City Councilor and Mayor-elect Don Ness. Supporters of the ordinance said that while art is good for the city, it shouldn’t come at taxpayers’ expense. “I’m saying enough is enough – that’s what I’m hearing [from residents],” said Russ Stewart, who proposed the ordinance.
——————————————————————-
3. Give the Gift of Arts Advocacy
Everyone needs Arts Advocacy! We’ll make it easy for you:
Give an MCA membership on MCA’s secure website at:
mncitizensforthearts.org/join/membership/individual-memberships/
Give cool Arts Advocate gifts from MCA’s store at:
www.cafepress.com/mnforthearts
Happy Holidays!
——————————————————————
4. Event Reminders from MCA:
Minnesota’s Arts Advocacy Day
February 14, 2008 8:00 a.m. to 1:00 p.m.
Minnesota History Center and Minnesota State Capitol
More information here: http://mncitizensforthearts.org/events/advocacyday/
And Register On-line Now: http://www.surveymonkey.com/s.aspx?sm=Ugq3_2f8alNd0TXXWulLHyAg_3d_3d
Explore Minnesota Cultural Tourism Conference
January 22-24, 2008 (Cultural Tourism Day is January 23)
Alltel Civic Center, Mankato
More information here: industry.exploreminnesota.com/2008_Minnesota_Conference_on_Tourism.html
National Arts Advocacy Day
March 31-April 1, 2008
Washington, D.C.
More information here: www.artsusa.org/events/2008/aad/default.asp
——————————————————————-
