INTRODUCTION

Not for profit organizations that own property in Arlington, such as hospitals, schools and religious or cultural institutions, may qualify for an exemption from local taxes on real and personal property.

A qualifying organization must own the property as of January 1 and occupy the property as of July 1 of the tax year. Ownership, however does not automatically entitle an organization to an exemption. The property must also be used by the organization or another qualifying organization. An explanation of the general criteria that must be met and procedures for applying for an exemption are set forth in the guide published by the Massachusetts Department of Revenue in the Taxpayer's Guide to Property Tax Exemptions.

ANNUAL FILINGS (M.G.L. Ch. 59 S.5 Clause 3(b) and S.29)

Form 3ABC – Every charitable organization owning property on January 1 must file a property return with the Assessors in order to receive an exemption for the fiscal year that begins on the next July 1. The return must be received in the Assessors Office by March 1. Failure to file in a timely manner may bar the organization from exemption for that year.

A religious organization qualifying under Clause 10 or 11 of Section 5 of Chapter 59, must file a 3ABC only for property which is seeks exemption for property other than a house of worship or parsonage.

Form PC – A copy of the organizations' most recent annual report to the Public Charities Division of the Attorney General's Office (Form PC) must be attached to the 3ABC. Failure to submit the form PC may also bar the organization.

INITIAL APPLICATION FIRST TIME APPLICANTS OR WHEN THE THIRD QUARTER TAX BILL HAS ISSUED- FORM 1B3

An organization seeking a charitable exemption for personal property, or a particular parcel of real property, must make an initial application to the Assessors. This initial application is on a form 1B3. No application is required of a religious organization to establish exempt status for a house of worship or parsonage.

Once an exemption is established, no further application is required, provided there is no change in ownership, occupancy or other eligibility criteria. Annual filings on the 3ABC form by March 1 are required. Initially the organization must provide whatever information is reasonably required to establish eligibility. This information may include, but is not limited to:

* Articles of incorporation, charter, or declaration of trust

* Organization by-laws

* Identification of officers, directors, or trustees

* Description of charitable activities

* Description of the use of property, including use by all lessees or other occupants.

You may file this application and supporting documentation prior to the issuance of the actual tax bill.

Once the tax bill has been issued you must file with the Assessors no later than the due date of the "actual tax bill" (third quarter bill) , for the fiscal year. There are no exceptions.

APPEALS

Filing an application for abatement of tax for exempt status does not stay the collection of taxes. To preserve the right to appeal, the organization must pay at least one-half of the personal property tax it is contesting. For appeals involving real estate with a tax over $3,000, the organization must have paid every installment timely without incurring interest. If an exemption is granted, a refund will be made.

The Assessors have three months to act on the applications regarding the abatement of tax due to exempt status. If the Assessors deny your application you have three months to file an appeal at the Appellate Tax Board.