Preserve property tax exemptions for Florida nonprofits

Mote Marine Aquarium, Selby Botanical Gardens and the Florida Studio Theatre are among the nonprofits in Sarasota County that have long been exempt from paying property taxes.Now, Sarasota Property Appraiser Bill Furst wants those revered institutions and other nonprofits to start paying property taxes and potentially face new tax bills ranging anywhere from 3 percent to 100 percent of their property value, blowing a big hole in their budgets and jeopardizing their ability to perform their missions. We all lose if that happens.The stated reason for Furst’s move: The nonprofits derive revenue from accessory uses like restaurants, gift shops and property rentals.Like many, I believe this is a misinterpretation and misapplication of Chapter 196 of the Florida statutes. Exemption from property tax for nonprofits is firmly established in the Florida Constitution and has been reiterated in a variety of legal cases over the years. Unfortunately, that hasn’t stopped some property appraisers from occasionally trying to revisit these long-standing and well-settled laws, at the expense of local nonprofits.The long-held interpretation of state law is that when proceeds from activities on a nonprofit’s property benefit the nonprofit’s mission, and when the uses in question are ancillary to the property’s primary function in furtherance of the nonprofit’s mission, the nonprofit’s property remains tax-exempt.For example, revenue from a corporate event at the Glazer Children’s Museum helps fund the creation of more engaging exhibits for our children and by law is exempt from tax. And revenues from wedding rentals at the Museum of Fine Arts St. Petersburg help fund the museum’s operations and aren’t diverted to the government.Accessory uses like these make up a vital part of many nonprofits’ operating budgets. And even more important, they introduce many people in the community to these institutions.A full 8 percent of Florida’s workers are employed by nonprofits. The benefits and significant economic impact that nonprofit cultural institutions provide our community is tremendous. They work hard to give back to our community, and many have stepped up during the pandemic to meet needs such as online educational programming during this challenging time.A dangerous trend is afoot in Sarasota with this proposed new tax on nonprofits. If allowed to stand, this denial of exempt status will have broad implications to the fiscal health and vitality of our key cultural institutions and will have significant impacts on not only our Tampa Bay community, but on the entire State of Florida.Fortunately, Sen. Joe Gruters and Rep. David Borrero have introduced legislation to clarify the misinterpretation of state law once and for all, which will protect nonprofits around the state from attempted tax grabs by overreaching property appraisers.Our cultural institutions, after a COVID-impacted year, need our help more than ever. This is not the time to assess new property taxes, and property appraisers must understand that levying new taxes during this time of economic uncertainty stunts economic growth and negatively impacts our prosperity.Please reach out to your state legislators and urge them to vote yes on Senate Bill 1214 and House Bill 889 . Ron Christaldi is Tampa Managing Partner of Shumaker, Loop and Kendrick, LLP and president/CEO of Shumaker Advisors Florida. He has served in leadership roles for a wide variety of nonprofit cultural institutions such as the Tampa Museum of Art, Tampa Bay Businesses for Culture and the Arts, and Tampa City Council’s Citizen Advisory Committee on the Economic Impact of Cultural Assets.

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