SCHENECTADY Nonprofits facing tax deadline today Form must be turned in to avoid bills BY KATHLEEN MOORE Gazette Reporter
Despite the mayor’s best efforts, it looks like some charitable organizations are going to be hit with property tax bills for another entire year. Today is the last day that nonprofits can certify that they still use their building and should not be taxed. If they don’t turn in a simple form by the end of the day, it will take a special act of the state Legislature to free them from next year’s taxes. Last year, the state had to pass more than 12 pieces of legislation to rescue Schenectady’s nonprofits and the City Council spent hours trying to sort through the chaos created when 15 nonprofits ignored the annual deadline. All of them were automatically added to the tax roll without fanfare, taking everyone involved by surprise when the first tax bills arrived. This year, Mayor Brian U. Stratton said he has personally called every nonprofit that hasn’t filed. Staff members and City Council members have apparently done the same. But some agencies still haven’t taken action. “I’ve made three calls to each of them, trying to give them the message,” Stratton said this week. “We’ve got to get the message out there. The deadline is March 1, which is a Sunday, which means they have to file by Friday.” He urged nonprofits to call the assessor’s office at 382-5075 to fi le today. Last year’s mess began when some nonprofit directors retired or died, leaving successors who didn’t understand the tax-exemption deadline. In the case of Home Furnishings Inc., the nonprofit’s building had no mailbox and none of the city’s mailed warnings reached it. The agency that provides furniture to victims of fires found itself with a tax bill equal to a third of its annual budget. Among those who got taxed were several churches, Carver Community Center, the Civic Players and two fraternal lodges. The charges panicked some nonprofit leaders, who said they would be forced into bankruptcy. Home Furnishings Inc. and others held fundraisers to try to pay the bills, while Carver Community Center and several churches refused to pay any of the tax. Only the Civic Players paid all of their tax. Eventually the state passed special legislation allowing the nonprofits to file their exemptions late. The City Council then voted to refund all taxes paid by every nonprofit. But the issue took 11 months. Council members swore they’d beg every nonprofit personally to avoid the situation happening again — and yet it is. “It doesn’t surprise me because it happens every year,” said Councilman Mark Blanchfield, who calls nonprofits to warn them of the impending deadline. “A lot of not-for-profits are volunteer organizations. There’s frequently turnover by the people in charge of these things. That’s when this happens, typically — when there’s turnover.” The annual filing is required to weed out buildings that have been sold to taxable owners. In last year’s case, all but one of the agencies that didn’t turn in their forms were still genuine nonprofits. But the rule also...............http://www.dailygazette.net/De.....amp;EntityId=Ar01104
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