Nonprofit Taxation Meeting Tomorrow
October 25, 2000
IMPORTANT: NON-PROFIT TAXATION MEETING TOMORROW!
Can You Send Someone to Attend?
The Minnesota Department of Revenue is in the process of designing its tax reform proposal to be presented to the 2001 Minnesota Legislature. They are considering, as part of their proposal, a measure that could result in additional taxes on non-profits. We Need To Act Now. We need to convince Revenue not to include such measures in its proposal to the legislature.
WHAT: Stakeholder Meeting for Tax Exempt Entities
Revenue will be discussing both sales tax reform and property tax reform issues as they relate to “exempt entities.” This is an important meeting for us. It is a KEY time to listen to Revenue about their plans, to ask questions, and to be heard.
WHEN: Thursday, October 26, 2000, 8:30 a.m. to 12:00 noon
WHERE: Department of Revenue Auditorium, 600 N. Robert St., St. Paul
AGENDA:
8:30 Welcome by Commissioner Matt Smith, Overview of Tax Reform Effort
8:45 Overview of today’s meeting, Jenny Engh, Asst. Commissioner
9:00 Sales Tax Reform Issues: Background, Definition of Exempt Entities, Administrative Issues, Exemption for Purchases, Exemption for Sales
10:30: Property Tax Reform Issues: Background, Definition of Exempt Entities, Administration/Uniformity, Contribution for Local Services.
The Department’s Briefing Papers will be provided at the meeting.
OUR KEY MESSAGES IN OPPOSITION TO TAXES ON NON-PROFITS:
Every dollar that a charity must pay in taxes directly reduces the resources available to fulfill its charitable mission.
People who contribute to charities expect their money to be used to further the organization’s charitable mission rather than to pay taxes. A tax on charities diminishes the value of charitable contributions.
The vast majority of Minnesotans support keeping charities free from taxation (88% in a poll by the MN Center for Survey Research)
Taxes would drain resources from charities and transfer them to government at a time that government is experiencing an historic surplus, and at a time when charities are being asked to do more, rather than less.
The public benefit that charities provide far exceed the cost of the services they consume.
Most tax-exempt property is owned by state and local government, rather than by charities. If the state’s goal were to raise revenue for local government, it would be far more effective for the state to pay taxes on its own property.