Nonprofit Taxation

Citizens Count Editor

Nonprofit institutions are exempt from paying property taxes, but many New Hampshire cities and towns are now asking nonprofits to pay for municipal services through so-called PILOT agreements.

Under PILOT (Payment In Lieu of Taxes) agreements, nonprofits such as colleges, hospitals, and human service agencies - all of which are exempt from property taxes - are asked to voluntarily contribute to their city or town's budget. 

According to a recent study by the Lincoln Institute of Land Policy, while some PILOT programs can be flawed, they can have positive effects both for nonprofits and the communities they serve.

The study also notes that the great majority of nonprofits which take part in PILOT agreements are universities and hospitals; smaller nonprofits such as human service agencies tend to rent space and thus do not benefit from the property tax exemption. However, since part of that rent goes towards the landlord's property tax bill, they are effectively contributing their full share of taxes to municipal budgets.


"For" Position

By Citizens Count Editor

"Nonprofits should pay more taxes." 

  • Advocates for PILOT agreements say that nonprofits should pay for the services they consume, such as police and fire protection, road maintenance, and sewers.

"Against" Position

By Citizens Count Editor

"Nonprofits should not pay more taxes."

  • Asking nonprofits to pay more taxes can lead to cuts in services, higher fees, and job cuts.


In Committee

Establishes a commission to study property tax exemptions for charitable organizations, including charitable nonprofit housing projects.

Killed in the House

Establishes a commission to study the charitable status of certain nonprofit organizations for purposes of state and local taxation.

Signed by Governor

Requires a medicinal marijuana treatment center to give payment in lieu of taxes to a municipality if the center's nonprofit status grants a property tax exemption.

Interim Study

Applies the business enterprise tax to 501(c)(3) nonprofits with annual revenues - less contributions and grants - exceeding $10,000,000. This bill also lowers the rate of the business enterprise tax.

Killed in the House

Requires some nonprofits to pay the Business Enterprise Tax.

Killed in the House

Limits the exemption from property taxation granted to charitable nonprofit hospitals only to the main campus of the hospital.

Should nonprofits pay more taxes?


Log in or register to post comments

Issue Status

Sen. Melanie Levesque has proposed a bill for 2020 to create a commission to study a possible property tax exemption for charities. Contact your elected officials to share your thoughts about this issue.


Here in NH, your opinion counts. We make it easy to find and reach out to your elected officials about the issues that matter most to you. Click to search and contact your elected officials!

Join Citizens Count

Join our constantly growing community. Membership is free and supports our efforts to help NH citizens become informed and engaged. 


©2020 Live Free or Die Alliance | The Live Free or Die Alliance is a 501(c)3 nonprofit organization.