NEW: Rep. Carnevale Eyes Municipal Payments From Nonprofits
Tuesday, March 06, 2012
Representative John Carnevale has introduced legislation again this year, 2012-H 7450, to allow municipalities to seek reimbursement for essential services provided to tax exempt properties.
The bill, which is before the House Committee on Finance, would allow municipalities to charge a “sum equal to or nor more than 25 percent of all taxes that would have been collected had the property been taxable.” Essential services are defines as including but not limited to police, fire and rescue.
“Whatever kind of arrangements that do exist now have not totally eliminated the animosity that many taxpayers feel toward those institutions that are tax exempt,” said Representative Carnevale. “Taxpayers know the value that educational institutions and other non-profits bring to a community, but they also know their tax bills are going higher and higher and they are crying out for some relief. I think a 25 percent assessment is a reasonable way to address this matter because it gives the institutions a break but it will prove to regular taxpayers that these institutions are doing their fair share.”
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLASTRepresentative Carnevale said he introduced the bill primarily in an effort to help Providence face its current fiscal challenges, but that the legislation has statewide implications. “Other communities, such as Newport, Warwick, Smithfield, have tax exempt institutions that also benefit from municipal services. In all those communities, I think it is fair that some form of reimbursement be made to the municipality that makes sure these institutions have police, fire and rescue coverage just like everyone else living in that community and paying taxes,” he said.
The bill is co-sponsored by Rep. Anastasia P. Williams (D-Dist. 9, Providence), Rep. Thomas Winfield (D-Dist. 53, Smithfield, Glocester), Rep. Joseph A. Trillo (R-Dist. 24, Warwick) and Rep. Arthur Handy (D-Dist. 18, Cranston).
Representative Carnevale has introduced another bill this session that is also designed to bring some financial relief to communities that house private, nonprofit institutions of higher learning.
That bill, 2012-H 7722, would allow municipalities to assess private colleges and universities a $150 per semester fee for each dormitory in the municipality. As proposed in the bill, each entry bearing a discrete name or number as of January 1 of this year would be considered a separate dormitory.
“We are happy to have all these students who are living in dorms because they add to the vibrancy of the community and they contribute to the financial health of the community. Trying to impose some sort of student fee would, I think, be the wrong direction to take,” said Representative Carnevale. “On the other hand, the dorms house many students and, like other buildings in the city or town – residential or commercial – dormitories benefit from community services and the communities deserve some recompense for that.”
The bill is before the House Committee on Finance and is co-sponsored by Rep. John J. DeSimone (D-Dist. 5, Providence), Representative Williams, Representative Winfield and Rep. Raymond A. Hull (D-Dist. 6, Providence, North Providence).
Representative Carnevale plans to introduce a third bill this week that will also impact on the tax revenue of communities that house educational institutions.
That bill will exclude from tax exemption any property, income or profits of an educational institution or library derived from activities not involving education.
“I believe that educational institutions have a special place in a community and consequently deserve some kind of tax exemption,” he said. “But land and buildings owned by these institutions that generate profit for the school – such as parking lots or non-classroom buildings, such as theaters – fall into a different category. A private citizen owning and operating a parking lot in downtown Providence is taxed on that property. So too should be an educational institution if the land or building does not specifically and fully serve an educational purpose.”
