A Georgia low income housing
organization, recently lost its bid
for property tax exemption for the
years before the organization’s facility
actually opened. Last month,
the Georgia Court of Appeals held
that the exemption did not apply to
the start-up phase, during which the
organization was obtaining financing,
constructing and renovating.
According to the Court, the organization
can claim exemption only
when the organization is actually
providing charitable services — in
this case housing tenants.

What This Case Teaches:

When setting up a charitable
venture, find a way to begin serving
the target population early in order
to obtain exemption from real estate
property taxes.