Committee agrees to waive half of second tax payment for Booker T. Washington Academy lease at Saint Stanislaus, requests statute review

The Tax Abatement Committee voted to waive 50% of the second tax payment for Booker T. Washington Academy, a nonprofit charter school that rents space from Saint Stanislaus Church, after the school's representatives described ongoing enrollment and financial challenges. Representatives said the school paid the first half of the tax bill, requested the second payment be waived to preserve funds for students, and noted the lease arrangement historically involved additional rent that covered taxes when the Board of Education formerly occupied similar properties.

A city finance compliance and insurance auditor explained the legal background: the state statute currently places tax responsibility on the nonprofit property owner even when the owner rents to another nonprofit. The auditor told the committee this situation has recurred and suggested staff consider a review of the statute and a possible ordinance to address nonprofit-to-nonprofit leasing scenarios. "The state statute very clearly states that a nonprofit can rent to another nonprofit, but they are responsible for the taxes," the auditor said.

Committee members said they have historically granted partial relief in similar cases and recommended waiving 50% of the second payment; they also approved a friendly amendment to waive interest provided the tax office confirms whether a payment had been mailed and recorded. The committee approved the amended motion by voice vote.

The committee emphasized the vote was a case-by-case accommodation and not a change to the city's tax code. Members directed staff to confirm the payment timeline and to consider whether a statutory or ordinance-level fix is warranted to address nonprofit landlords who lease to nonprofit tenants.