by Doreen Martel

Created on: December 16, 2009

In Massachusetts, each municipality has the right to grant a property tax waiver to nonprofit organizations in their communities. Some such as churches, schools, and other similar organizations will be allowed specific exemptions. Not all nonprofit organizations will be granted these waivers, and ownership of a property by a Massachusetts nonprofit organization does not guarantee a waiver.

Property tax waivers must be applied for by a Massachusetts nonprofit organization through the assessor’s office in the municipality where the property that is owned by a Massachusetts nonprofit organization is located.  If denied, the appeal process is almost always turned over to The Appellate Tax Board, even if there is a county commissioner.  Appeals may be filed all the way to the Massachusetts Supreme Judicial Court.

One benefit in Massachusetts for nonprofits who seek a property tax waiver is that once it is granted it will never require renewal. This means that for as long as the nonprofit owns the real estate, the property tax waiver will remain in place.  This is contingent on no changes being made in the status of the nonprofit organization which would impact their eligibility.

Religious organizations do not need to file an application (Form 3ABC) for a house of worship. However, if there is a tax bill sent to them, they will be required to file for a waiver.  Any nonprofit organization that is issued a tax bill must pay that bill in a timely manner even if they have filed a request for a waiver of taxes.  If the assessor’s office has issued a bill to the Massachusetts nonprofit organization, one half of those taxes must be paid. If the tax amount is larger than $3,000, then all payments must be made in full and on time.  Any taxes paid prior to the decision being made will be refunded to the Massachusetts nonprofit organization if the property tax waiver is granted.

Often, the waiver process may take upwards of three months. Massachusetts does require that a decision is sent to the nonprofit organization within ten days of a decision being made.  Appeals must be filed within three months from the date of any denial of waiver of property taxes for Massachusetts nonprofit organizations. 

 Documentation that is required for Massachusetts nonprofit organization that is seeking a waiver of property taxes includes (but is not limited to):

- Articles of Incorporation

- Copy of By-Laws or Constitution

- List of

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