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Bill

SB 5697

Providing a property tax exemption for property owned by a qualifying nonprofit organization and loaned, leased, or rented to and used by any government entity to provide character-building, benevolent, protective, or rehabilitative social services.

2025-2026 Regular Session Introduced by Manka Dhingra and 3 co-sponsors

Exempts nonprofit-owned property from taxation when leased to government entities for social services, reducing local tax revenue while incentivizing public-nonprofit partnerships.

By resolution, returned to Senate Rules Committee for third reading.
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WeVote Research Nonpartisan
Bill Summary · SB 5697

Legislative bill overview

SB 5697 creates a property tax exemption for nonprofit organizations that own real property loaned, leased, or rented to government entities delivering social services such as character-building, benevolent, protective, or rehabilitative programs. The exemption applies to the property itself, reducing tax liability for qualifying nonprofits that partner with government agencies to deliver public services.

Why is this important

This measure affects municipal and county tax revenues while potentially incentivizing public-private partnerships between nonprofits and government for social service delivery. It could expand affordable access to facilities for government social programs while simultaneously reducing property tax collection for local governments that fund schools, infrastructure, and public services.

Potential points of contention

  • Revenue impact: Local governments lose property tax revenue from exempted properties, requiring budget cuts or tax increases elsewhere to maintain services
  • Definition ambiguity: Terms like "character-building" and "rehabilitative" services are subjective and may create disputes over which nonprofits qualify
  • Equity concerns: Properties used for government services receive tax breaks while similar private or for-profit facilities do not, potentially creating competitive disadvantages

Compiled from official sources — confirm details with the bill’s official record.

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