Regular readers of this column no doubt are used to the typical note on state tax topics such as residency and sales taxes. But here at Noonan’s Notes global headquarters, we like to mix it up occasionally, not only to illustrate our depth, but also to keep readers on their toes. And for many tax practitioners, questions regarding property taxes often lurk in the background. Indeed, in many states like New York, the state and local tax guys usually leave the property tax projects to the practitioners in their business or real property groups. But it’s still important for the state tax guys to understand how the system works and be aware of potential traps.

The real property tax exemption for nonprofits is one of those areas. Nobody likes to pay property taxes, and in New York, the property tax burden is one of the highest in the nation. Also, in practice, it is generally much harder to move through the tax appeals or dispute resolution process in the property tax system, because the procedures are disjointed and handled on a town-by-town or locality-by-locality basis. So it’s important to get the issues right from the get-go.

Originally Published in State Tax Notes - March 31, 2014.