Are Volunteer Fire Departments eligible for tax-exempt municipal leasing?
Yes, but there are some important differences. 95% of the proceeds of a tax-exempt lease for a volunteer departments i.e. a 501(c)(3), must be used for the “acquisition, construction, reconstruction, or improvement of a firehouse (including the land) OR for a fire truck used by or to be used by, the fire department.” The rules are fairly specific. A computer or an ambulance for example, would not qualify. A volunteer fire department would be eligible, subject to credit approval, for our non-tax exempt, non-profit rates, however. A volunteer department would not be eligible for non-appropriation privileges.
