Nonprofit property management

From the 2024 DOR Tax Exemption Study

82.04.4274 - Nonprofit property management Description Nonprofit property management companies may deduct income received for paying on-site employees from a: - Property owner. - Housing authority. - Limited liability company or limited partnership where the only managing member or general partner is a housing authority. Purpose To treat the income as pass-through. The management company supervises the on- site personnel, but the wages are ultimately the obligation of the owner. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $1.250 $1.290 $1.350 $1.410 Local Taxes $0.000 $0.000 $0.000 $0.000 Repeal of Repealing this deduction would increase revenues. exemption Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $1.190 $1.350 $1.410 Local Taxes $0.000 $0.000 $0.000 $0.000 Assumptions - This repeal takes effect July 1, 2024, and impacts 11 months of collections in fiscal year 2025. - Growth rate mirrors the service and other activities B&O taxable activity growth rate reflected in the Economic and Revenue Forecast Council's March 2023 forecast. Data Sources - Department of Revenue, Excise tax data