Tax-exempt organizations in Connecticut have until Nov. 1 to file their Quadrennial Property Tax Exemption Report (also known as an “M-3 application”), or risk losing their property tax exemption.
The state requires that the forms be filed every four years. The requirement applies to all tax-exempt organizations, including charitable, scientific, education, and historical organizations. The exemption applies to real estate, personal property, and motor vehicles.
It is critical for tax-exempt organizations to maintain their tax-exempt status by complying with this filing requirement in a timely manner. If your organization needs assistance, Harris Beach Murtha can help.
The M-3 application form can be downloaded from the website of the municipality where the organization is located. Completed applications must be submitted to the local assessor's office.
The application will require certain materials to prove the organization’s tax-exempt status. While documents may vary by municipality, here are some documents/information that may be required:
- IRS determination letter recognizing the organization's exemption under Section 501(c)(3) or 501(d) of the Internal Revenue Code.
- Connecticut sales tax exemption documentation.
- Certified copies of corporate charter and by-laws.
- Recent audited financial statements and federal and/or state income tax returns.
- A description of how the organization uses real and personal property, and how it supports the organization’s tax-exempt purpose.
- All sources of revenue generated by the property, including rents, fees, grants, and donations.
- The required annual personal property declaration for the current year.
- A complete list of all motor vehicles registered in Connecticut.
- Proof of funding requests made to public institutions or private parties in the current tax year and prior tax year.
- Evidence of compensation to officers, directors, and employees.
Organizations that don’t meet the Nov. 1 deadline can apply to the local assessor for an extension of up to 60 days, as stated in Connecticut General Statute §12-87a. The filing fee is $35.
