Statutory Exemptions
An exemption from local taxation is a privilege allowed by the state legislature. It releases a property owner from the obligation to pay all or a portion of the taxes assessed on a parcel of property. The law places the burden of establishing entitlement to an exemption upon the person or organization seeking the exemption.
Charitable organization exemption
M.G.L. chapter 59 &5, clause Third
The law provides for exemption of certain personal and real property of charitable organizations. Not all charitable organizations will qualify for this exemption, and not all properties of qualified organizations will be eligible for exemption. The term "charitable" is described in M.G.L. chapter 59 &5, clause Third, and is further defined in the many Massachusetts court decisions which have been made with respect to this exemption.
Two Forms Required: The "One-Time" Preliminary Consideration Application and the Annual 3ABC
In order for an organization to procure exemption from local property taxes, the entity must take steps to ensure its eligibility. No exemption will be granted to an organization until it has filed a and been approved by the Assessing Department as a qualifying charitable organization. The information returned with the Preliminary Consideration application is used by the Board of Assessors to determine the taxable or exempt status of an organization's real and/or personal property. Every charitable, benevolent, educational literary, temperance or scientific organization seeking exemption of FY2008 real estate or personal property taxes must file a Preliminary Consideration Application by November 1, 2007.
Once the organization has been approved, it must file a Form 3ABC with the assessors every year on or before March 1. This form, titled "Return of Property Held for Charitable and Other Purposes" is a state tax form. Its filing is mandatory and cannot be waived by the assessors. If an organization fails to file this form every year, its exemption may be lost, and previously exempt properties may lose their exempt status. The Form 3ABC
is not an application for exemption.
Attached to the Form 3ABC must be a "true copy" of the Form PC-1 which is filed every year with the Public Charities Division of the Massachusetts Attorney General's office located at:
One Ashburton Place
Boston, MA 02108
The Form 3ABC is available here
, or a hard copy can be procured at:
Hobbs & Warren, Inc
11 Beacon Street
Boston, MA 02108
(617) 523-2282.
NOTICE:
EFFECTIVE FOR FISCAL YEAR 2006: Under the authority of the Massachusetts Department of Revenue, the Boston Assessing Department now requires charitable organizations filing Form 3ABC for property located in Boston to provide additional tenant information under Section D, REAL ESTATE
You can print the 3ABC form from this site.
How is an application made?
An application on an approved abatement application form must be filed with the Assessing Department [within 30 days of the issuance of the Fy2006 actual (fourth quarter) tax bill. A separate application must be made for each property.
Supporting documentation, such as the organization's articles of organization, trust, by laws, deed to the property, and other information about the organization may be submitted with the application. If sufficient information is not submitted with the application, it must be provided within thirty (30) after filing the application.
An inspection of the property may be made by a member of the Assessing Department staff to verify its use and occupancy.
A request for an exemption determination may also be made prior to the mailing of the Third quarter tax bill through the preliminary consideration procedure. Please Contact the Assessing department at (617) 635-4284 for more information.
Note: Filing an application does not mean you can postpone the payment of the tax. If the total tax on real estate for the fiscal year is more than $3,000.00, the tax must be timely paid in order to preserve the organization's right to appeal the decision of assessors. Any amount of tax which is paid late will be subject to interest and collection costs.
Requirements
- The organization must be a charitable corporation or a Massachusetts charitable trust.
- The organization must timely file the Form 3ABC (i.e., on or before March 1 preceding the tax year), accompanied by a true copy of the Form PC-1.
- The organization must own and occupy the property in issue for its charitable purposes on July 1 of the tax year. Occupancy may be established as follows:
- Real property which was occupied on July 1 by the organization for its charitable purposes, provided those purposes are regarded as charitable under Massachusetts local taxation law,
Or- Real property which was occupied on July 1 by other organizations, for their charitable purposes, provided those purposes are regarded as charitable under Massachusetts local taxation law,
Or- Real property which was purchased by the organization on or before July 1 for the purposes of relocation the organization's headquarters to that site. In this case the exemption may continue for two years, but if the organization has not moved to the site within that time, the exemption ceases.
©2007 The City of Boston