The Indiana tax court ruled that landlords who rent to nonprofits may qualify for a tax exemption for their property taxes when they rent at a discount. Interesting benefit to Indiana nonprofits, nice side effect for the landlord.
There is some concern that this may affect property tax revenues – will we see landlords rushing to the county auditor’s office to file for a property tax exemption, thus lowering the amount of county property tax revenue? Maybe over time, but there would have to be a fair net benefit to the landlord: rental income at less than fair market value + reduction (savings) on property tax exemption.
Check out the Indy star article: Indiana Tax Court Ruling
Link to the Tax Court Ruling: Oaken Bucket Partners – Heartland Church