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The owner can call it anything he wants...it doesn't make a difference. The tax authorities for the property had to agree with the designation...which they only do after reviewing the application, which would include what the specific use is. If the use does not include being a residence, than it isn't being used for the tax exempt purpose and would revert to being taxed. If the charitable purpose is something like giving shelter to orphans, or a retreat, or such, clearly the tax exemption includes being a residence. Having residents is NOT a disqualification. Being owned by a "not for profit/charity" does not mean this property is exempt...many NFP own property for investment and business purposes that are fully taxable...although the income they derive from it may not be.

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16y ago

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