Bill > SB5516

This bill modifies the property tax exemption for community centers by expanding the definition and scope of the exemption. Currently, property determined to be surplus by a local school board and purchased by a nonprofit for community services can be tax-exempt for 40 years. The bill now adds a specific provision that for taxes levied between 2026 and 2035, the definition of "community center" will also include property surplus to the needs of a university that is purchased by a nonprofit and converted into community facilities for nonresidential coordinated services. The bill allows community centers to generate some revenue by loaning or renting out space to businesses or individuals while maintaining their tax-exempt status. This expansion provides additional flexibility for nonprofits to acquire and repurpose surplus educational properties into community service centers during this specific decade, with the tax exemption applying specifically to tax years 2026 through 2035. The bill aims to support community development by creating more opportunities for nonprofits to establish service centers in previously unused educational buildings.