Council Reviews Property Tax Exemptions for Nonprofits and Medical Facilities

The Grants Pass City Council Workshop on August 4, 2025, focused on the financial implications of property tax exemptions for nonprofit organizations in the city. Council members discussed the potential unrealized property tax revenue from businesses registered as 501(c) nonprofits, which are exempt from property taxes.

One council member raised the question of whether the city has a clear understanding of the total amount of unrealized property tax from these entities. While an exact figure was not available, it was suggested that the city could obtain a list of qualifying properties from the county. This information could help the council assess the financial impact of these exemptions.

The discussion also touched on previous conversations regarding utility fees implemented for nonprofits. These fees were designed to help cover costs associated with public services provided to these organizations, which often receive resources without direct charges. The council noted that not all nonprofits are classified under 501(c) status, as some medical industries also benefit from similar tax exemptions and own significant commercial property in the area.

The workshop concluded with an invitation for further questions and discussions among council members, indicating that this topic may be revisited in future meetings. The implications of property tax exemptions for nonprofits remain a significant concern for the city, as they navigate the balance between supporting community services and ensuring adequate funding for public resources.