Should Nonprofits Have to Pay Taxes?

Maine’s new budget would hit hospitals, nature preserves By Elaine S. Povich, Stateline – FREEPORT, Maine – Marlene DiMarco-Hammond paused while sorting through some gently used clothing at the thrift store run by Freeport Community Services, a nonprofit organization. “This center was really, really helpful to me” after a divorce and illness, the former client and current employee said. An exemption from paying local property taxes, which applies to all Maine nonprofits, helps Freeport Community Services serve more people. But that exemption would end under Republican Gov. Paul LePage’s new budget proposal. The governor’s plan, which would hit groups ranging from nature preserves and summer camps to charity hospitals and private colleges, is drawing the attention of other cash-strapped states and cities where the idea of taxing nonprofits is no longer off limits. LePage wants to lower the income tax from 7.95 percent to 5.75 percent and increase the...

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