Citizens for Responsible Education Reform

National Education Association's D.C. Property Taxes

NEA Tax Exempt Status?

While Congress has exempted over 45 groups from paying property taxes in the District of Columbia, these are typically charitable or public-purpose organizations -- such as veterans' organizations and historical groups. None of these organizations, however, is a labor union or engages in anywhere near the level of political activity as the NEA.

[Background: NEA was originally chartered in 1906 as a professional association. In 1978, its mission and IRS status officially changed to that of a labor union.]

Wording included in the current D.C. Appropriations Bill concerning the National Education Association's property tax status reads as follows: "The Committee notes that of some 50 labor organizations located in the District of Columbia, only one, the National Education Association, enjoys a congressionally mandated exemption from the local property tax. The bill includes language restoring fairness in the application of the local property tax among labor organizations in the District of Columbia, and applies the approximately $1.3 million revenue in fiscal year 1998 to public charter schools."

A similar provision was voted on, and rejected by a close vote of 210-213 in the 1996 District of Columbia Appropriations Act. Republicans who voted "no" in 1996 include Ralph Regula (OH-16th), Frank Wolf (VA-10th), James Walsh (NY-25th), David Hobson (OH-7th), Rodney Frelinghuysen (NJ-11th), and Michael Forbes (NY-1st).

For a more complete rundown of this BIG QUESTION MARK, visit:
Report on NEA's Sept. 23 Press Conference
September 1997 School Reform News
Alexis de Toqueville Institution's report, "A Capitol Loophole"
House Appropriations Committee Membership

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Last updated by CRER on 11/23/97