A recent state Supreme Court ruling allowing the taxation of certain nonprofit groups was overturned by the state Legislature. Senior citizens groups supported the Legislature's initiative, claiming retirement communities support people with disabilities. However, cities all over the state, wanting to tax upscale retirement communities that operate as nonprofits, had hoped the ruling would stand.
Some legislators claimed the ruling would have allowed taxation of legitimate charities. But city government associations, strapped for revenue, said they were interested only in taxing expensive retirement communities, which have increasingly sought tax-exemption. They pushed the Legislature to allow them to do so, while protecting charities.
For the time being, the Legislature will keep exemptions for all nonprofit groups for two years and commissioned a study to look into the matter further.