An executive order signed Tuesday morning by Mayor Ed Gainey will begin an examination of which Pittsburgh non-profits must pay property taxes.
The years-long study will start with the largest organizations in city-limits that are considered non-profits. What organizations will be looked at first were not identified.
Each must meet five requirements to be considered a “purely public charity”.Gainey’s administration estimates charitable organizations in the city would owe $36 million in property taxes.
Five requirements:
1. Advances a charitable purpose
2. Donates or renders gratuitously a substantial portion of its services
3. Benefits a substantial and indefinite class of persons who are legitimate subjects of charity
4. Relieves the government of some of its burden
5. Operates entirely free from private profit motive
“In the City of Pittsburgh, 34% of the property is designated as tax-exempt, that is, the owners are not paying any property taxes.” said Mayor Ed Gainey. “The only properties that should not be subject to property taxes are those owned by purely …