HARRY HUGHES, Governor

161

In subsection (b)(1) of this section, the words
"actually" and "exclusively" are added for clarity and
consistency.

In subsection (b)(2) of this section, the word
"pecuniary", which formerly modified "profit", is
deleted as superfluous.

In subsection (b)(2)(ii) of this section, the word
"funds" is substituted for the former reference to
"profits", since to qualify for an exemption the
company must be organized on a nonprofit basis.

Defined terms: "Property" § 1-101
"Property tax" § 1-101

7-202. CHARITABLE OR EDUCATIONAL PURPOSES.

(A)  "FRATERNAL ORGANIZATION" DEFINED.
IN THIS SECTION:

(1)  "FRATERNAL ORGANIZATION" MEANS ANY ORGANIZATION
THAT:

(I)  IS CONDUCTED SOLELY FOR THE BENEFIT OF ITS
MEMBERS AND ITS BENEFICIARIES;

(II)  IS OPERATED ON A LODGE SYSTEM WITH A
RITUALISTIC ACTIVITY; AND

(III)  HAS A REPRESENTATIVE FORM OF GOVERNMENT;

(2)  "FRATERNAL ORGANIZATION" INCLUDES A SORORAL
ORGANIZATION; AND

(3)  "FRATERNAL ORGANIZATION" DOES NOT INCLUDE:

(I)  ANY COLLEGE OR HIGH SCHOOL FRATERNITY OR
SORORITY; OR                                   

(II)  ANY OTHER FRATERNAL OR SORORAL
ORGANIZATION THE MEMBERSHIP OF WHICH IS RESTRICTED WHOLLY OR
LARGELY TO STUDENTS OR GRADUATES OF AN EDUCATIONAL INSTITUTION OR
A PROFESSIONAL SCHOOL.

(B)  REQUIREMENTS FOR EXEMPTION.

(1) EXCEPT AS PROVIDED IN SUBSECTION (C) OF THIS
SECTION, PROPERTY IS NOT SUBJECT TO PROPERTY TAX IF THE PROPERTY:

(I) IS NECESSARY FOR AND ACTUALLY USED
EXCLUSIVELY FOR A CHARITABLE OR EDUCATIONAL PURPOSE TO PROMOTE
THE GENERAL WELFARE OF THE PEOPLE OF THE STATE, INCLUDING AN
ACTIVITY OR AN ATHLETIC PROGRAM OF AN EDUCATIONAL INSTITUTION;
AND