The Commonwealth Court has determined that a nonprofit that operates about 80 group homes in western Pennsylvania should not have been awarded tax-exempt status as a “purely public charity.”

A unanimous three-judge panel of the court ruled in Fayette Resources v. Fayette County Board of Assessment Appeals that the company, which is exempt from federal income taxes, failed to meet all of the requirements to qualify as a public charity as outlined in a 1985 state Supreme Court decision. The decision, issued Dec. 23, reversed a trial court’s finding that the company had met its burden.

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