Pennsylvania – Court: Towns May Challenge Tax Exempt of Camps

Pennsylvania – A ruling by the Pennsylvania Supreme Court may permit cities and towns in the commonwealth to challenge the tax-exempt status of nonprofit organizations. 

The ruling involves the Orthodox Jewish school’s summer camp of Mesivtah Eitz Chaim of Bobov, but its impact may be far-reaching. The court found most of the school’s 61-acre campus is taxable, and in doing so changed the criteria for deciding what qualifies as a public charity in Pennsylvania.

The new ruling effectively restores the narrower criteria for charity status. Duquesne law professor Nicholas Cafardi says that’s good news if you’re a mayor or school board president

“It’s wonderful news, especially if you, as most municipalities and school districts in Pennsylvania, are looking for additional sources of revenue,” Cafardi said.

Philadelphia officials say they plan to review the tax-exempt status of some of the city’s largest nonprofits in a wake of the state Supreme Court decision. The city used to get several million dollars a year from nonprofits.