Legal Definitions - exemption

An exemption is a legal permission that releases an individual, entity, or property from a specific obligation, duty, or requirement that would otherwise apply. It grants freedom from a particular rule, liability, or standard, meaning that the exempted party is not required to comply with it.

• Example 1: Regulatory Compliance

  A small, non-profit community theater group might be granted an exemption from certain complex financial reporting regulations that typically apply to larger commercial entertainment venues. Because their operations are smaller in scale and non-commercial, they are legally excused from the more burdensome reporting requirements.

  This illustrates an exemption because the theater group is released from a regulatory duty that other, larger entities in the same sector must fulfill.

• Example 2: Building Codes

  A historic landmark building undergoing renovation might receive an exemption from certain modern accessibility requirements, such as installing an elevator, if meeting those requirements would significantly alter its original architectural integrity and is deemed impractical. Instead, alternative accommodations might be approved.

  Here, the property is granted an exemption from a standard building code requirement (accessibility features) to preserve its historical character, meaning the owners are not obligated to follow the general rule.

• Example 3: Professional Licensing

  A medical doctor who has been practicing for many years in one state and holds a valid, active license might be granted an exemption from certain re-examination requirements when applying for a license in a neighboring state, due to a reciprocity agreement between the state licensing boards.

  This demonstrates an exemption because the doctor is excused from a specific licensing requirement (re-examination) that new applicants or those without reciprocity would typically need to complete.