NON-PROFIT TAX CHALLENGE STATEMENT

Today, challenges that the City of Pittsburgh filed in 2023 will begin to be heard in front of the Board of Property Assessments and Appeals Review.  

The City began this process in March of 2023.  The Pennsylvania Supreme Court held in the HUP case that in order to be exempt from paying taxes, a charity must meet the following test: 

• They advance a charitable purpose; 

• Donate or render gratuitously a substantial portion of its services; 

• Benefit a substantial and indefinite class of persons who are legitimate subjects of charity; 

• Relieve government of some part of its burden; and, 

• Operate entirely free from private profit motive.  

Failing on any one of the above prongs means that an organization can’t be considered a purely public charity for local taxing purposes.  Additionally, the parcels must be used for the charitable purpose of the charity. 

Some of the non-profits who own property in the City do not meet the standard defined by the PA Supreme Court.  They benefit from the services provided by the City of Pittsburgh’s Police, Fire and EMS teams. These non-profits benefit from City services, such as waste management and road paving. It’s only fair that they pay their share and not leave the burden on responsible tax paying residents. They should do their part in keeping our city a place where everyone has the ability to feel safe, thrive and feel welcomed. It is important that the City has a reliable tax base so that we can continue to provide the level of service residents have grown to expect. -Mayor Ed Gainey