ORDINANCE NO. BL2007-1310
An ordinance authorizing a property tax exemption for nonprofit community and performing arts organizations in accordance with Tennessee Code Annotated § 67-5-223.
WHEREAS, Tenn. Code Ann. § 67-5-223 provides that property owned by nonprofit community and performing arts organizations is eligible for property tax exemption as a charitable or educational use of property upon compliance with the provisions of such section, subject to approval by the county governing body; and
WHEREAS,
community and performing arts organizations seeking such property tax exemption
must meet the following statutory requirements under Tennessee Code Annotated
§ 67-5-223:
(1) The property must be owned and used by a public benefit nonprofit organization
established as either a nonprofit corporation or an unincorporated entity operating
as an association, a trust or a foundation pursuant to written articles of governance;
(2) The organization must be operated and governed by a board of directors of
not less than ten (10) members, all of whom are natural persons, and all powers
and affairs of the organization shall be exercised under the authority of the
board of directors;
(3) Not more than three (3) members of the organization or its board of directors
may be employees of the organization;
(4) Other than as an employee, no member, officer or director shall be compensated
for service as such;
(5) Other than for services as an employee, no member, director or officer of
the organization, directly or indirectly, may sell or provide, for monetary
remuneration, any goods or services to the organization;
(6) No member, director or officer of the organization may lend money to the
organization if the loan is secured by the organization's property;
(7) Other than for services as an employee, no member, director or officer of
the organization may profit from shows, exhibits or productions of the organization
or have any monetary interest in shows, exhibits or productions of the organization;
(8) In the event the organization sells any of its property which has been exempt
from taxation, it must notify the attorney general and reporter of its intent
to sell the property at least twenty-one (21) but not more than sixty (60) days
before the date of sale;
(9) The articles of governance of any unincorporated organization shall include
the provisions set out in this subsection (b) or be specifically incorporated
by reference;
(10) The articles of governance of the organization, whether incorporated or
not, and all amendments thereto shall be filed with the assessor of property
in the county in which the organization owns exempt property. This requirement
shall not be construed to override any other existing law as to filing of organizational
documents; and
(11) The organization shall annually supply the assessor of property with a
report which includes a listing of activities and uses of the property, current
statements of financial condition, and such further information as the assessor
may require;
and
WHEREAS, it is in the best interest of the citizens of the Metropolitan Government of Nashville and Davidson County that such a property tax exemption for nonprofit and community arts organizations be approved.
NOW, THEREFORE, BE IT ENACTED BY THE COUNCIL OF THE METROPOLITAN GOVERNMENT OF NASHVILLE AND DAVIDSON COUNTY:
Section 1. Effective for county real property taxes due on or after the effective date of this resolution, and until this Metropolitan County Council shall revoke or amend this resolution, the exemption provided in Tennessee Code Annotated § 67-5-223, as amended, shall be applicable in Davidson County.
Section 2. Organizations approved for this exemption by the state board of equalization shall report annually by March 1 to the assessor of property listing the organization's properties for which exemption is claimed and describing the uses of the property for community and performing arts purposes.
Section 3. This Ordinance shall take effect from and after its enactment, the welfare of The Metropolitan Government of Nashville and Davidson County requiring it.
Sponsored
by: Mike Jameson
LEGISLATIVE HISTORY |
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Introduced: | January 2, 2007 |
Passed First Reading: | January 2, 2007 |
Referred to: | Budget & Finance Committee |
Deferred: | January 16, 2007 |
Passed Second Reading: | February 6, 2007 |
Passed Third Reading: | February 20, 2007 |
Approved: | February 21, 2007 |
By: |