NEW: Providence Councilman Wants Brown to Pay Up
Wednesday, January 18, 2012
Providence Councilman John J. Igliozzi has introduced a resolution calling on the State of Rhode Island to amend the charter of Brown University to remove its blanket property tax exemption.
“As a non-profit educational institution, Brown University is entitled to a tax exemption, however, its colonial charter exempts it from taxes other non-profits pay,” explained Igliozzi. “Because of this blanket exemption, Brown does not pay taxes on properties that do not serve its educational purpose, properties it rents to other organizations and businesses, or other large properties that would otherwise provide revenue to the City of Providence.”
The resolution cites figures provided by the Office of the Tax Assessor showing that, due to the exemption outlined in Brown’s charter, the university saves more than $4.6 million in property taxes annually on 54 properties in Providence. “It is simply unfair to ask our residents and businesses to pay more and more in taxes each year, while preserving a 250 year old special privilege for an organization with a $2.5 billion endowment.”
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Igliozzi also discussed the City’s shrinking tax base and its effect on quality of life in Providence. “Every time a tax exempt institution takes a property off the tax rolls, it places a greater burden on local residents and businesses to make up for the lost revenue,” said the councilman. “That means less money in taxpayers’ pockets and fewer places for new, profitable, and taxable businesses to grow.”
