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A "nonprofit organization" is defined by U.S.C. 59-2-1101(1)(g)(i) in the following way.
"Nonprofit organization" also includes the following as defined by U.S.C. 59-2-1101(1)(g)(ii).
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As defined by U.S.C. 59-2-1101(1)(c) any property owned by a nonprofit organization that is used exclusively for a charitable, educational, or religious purpose may be eligible for exemption from property tax.Qualification for an exemption is contiquent upon ownership AND use. A property that is owned by an individual or for-profit business, but leased or, in some other way, used by a non-profit organization cannot be exempted. Also, property owned by a nonprofit organization but leased or, in some other way, used by an individual or for-profit organization may be subject to taxation. The Utah Supreme Court has determined that although exclusivity should be strictly construed, minor deviations from “exclusive use” should not automatically defeat an exemption. Clearly defined sections of a property can also qualify for an exemption even if other sections are used for profit, or another non-qualifying purpose. [Loyal Order of Moose 259 v. Salt Lake County Board of Equalization (657 P2d 257), 1982].
When a non-profit entity acquires property on or after January 1 that may qualify for an exclusive use exemption, that entity may apply for the exclusive use exemption on or before the later of MARCH 1ST (or the next business day if the 1st falls on a weekend) or 120 days after the property is acquired (§§ 59-2-1101 and 59-2-1102). If an exemption is not applied for timely, they will be required to apply during the next application period starting January 1st through March 1st of the next year.
After the Board of Equalization initially grants an organization a property tax exemption, the organization is required to file an "ANNUAL STATEMENT FOR CONTINUED PROPERTY TAX EXEMPTION" each subsequent year. This statement confirms their continued non-profit status and exclusive use of the property to maintain the property's tax exemption (§ 59-2-1102).
Vacant Land which is not actively used by the religious, charitable, or educational organization, is not deemed to be devoted exclusively to exempt purposes, and therefore not exempt from property taxes. If the vacant land is being held for future development or utilization by an organization, it is deemed not exclusively used for exempt purposes, and therefore not tax exempt. The vacant land will remain taxable until either construction commences or a building permit is issued for construction of improvements that are intended for exclusive use.