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February 11, 2010; Lawrence Journal-World | With state and local governments under continuing budget pressure from the recession, the search for revenue continues. The Kansas House Tax Committee is considering removing sales tax exemptions for recreational activities, fundraising events, nonprofit and charitable groups and religious organizations, while the Honolulu City Council is looking at caps on the value of property tax exemptions for nonprofit property [PDF]. Elsewhere, county assessors in northern Indiana have stepped up their collections from nonprofit universities, health care facilities and bingo halls. However, though Pennsylvania Governor Edward G. Rendell’s proposed budget eliminates 74 exemptions to the state sales tax, this time it does not eliminate the exemption for nonprofit cultural organizations (unlike a legislative deal that last fall agreed to extend sales taxes to arts and cultural performances and venues—but not to movies or sports events ). This exemption elimination trend is only likely to keep gathering steam as the recession continues and it may then be difficult to regain the tax breaks we all once took for granted. It is important for state associations and YOU to stay active on this front.—Jon Pratt
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