Squeezed Cities Ask Nonprofits for More Money

As recession-racked cities struggle to balance their budgets with everything short of feeling behind sofa cushions for loose change, a growing number are seeking more money ”” just don’t use the word taxes ”” from nonprofit institutions that occupy valuable land but by law do not pay property taxes.

Boston has been sending letters to its largest nonprofit institutions this year, telling them the value of their land and asking them to begin making annual payments that would eventually rise to a quarter of what they would owe if they paid property taxes. Mayor-elect Rahm Emanuel of Chicago wants the city to begin charging water fees to nonprofits, which have been spared them in the past. And the mayor of Providence, R.I., Angel Taveras, cited Boston’s example this month when he called on nonprofits to pay more money to the city.
“Every citizen, every city worker, every taxpayer, every business and every organization ”” including tax-exempt institutions ”” must share part of the burden of saving our city,” Mr. Taveras said in his budget address. He proposed closing Providence’s $109 million budget gap by shutting schools, laying off workers, cutting the Police and Fire Department budgets and raising taxes on homeowners as well as seeking larger payments from the city’s prestigious universities and other nonprofit institutions.

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Posted in * Culture-Watch, * Economics, Politics, Charities/Non-Profit Organizations, City Government, Economy, Housing/Real Estate Market, Law & Legal Issues, Politics in General, Religion & Culture, Taxes

One comment on “Squeezed Cities Ask Nonprofits for More Money

  1. Henry Greville says:

    As American society becomes increasingly agnostic, technocratic, and materialistic, property-owning not-for-profit organizations that have broad support among the voters in their respective communities (such as health care and education facilities and services) are most likely to survive political initiatives to begin demanding some sort of payments in lieu of property taxes. Theatre and dance companies and art museums might also survive if they are perceived as significant educational resources for all ages and economic classes. Houses of worship, however, should not be surprised when – by amendments to state constitutions and municipal charters – the message comes from voters, essentially, “You religious people have to compensate taxpayers for the area your property is taking up that could be developed for more publicly beneficial use.”