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
community and performing arts organizations seeking such property tax exemption
must meet the following statutory requirements under Tennessee Code Annotated
(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;
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.
by: Mike Jameson
|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|