Note: This is a summary of a story from the latest episode of The NonProfit Times TV.
First it was Boston, now Providence and DC are demanding payments from nonprofits.
In Providence, Mayor Angel Taveras is following in Boston's footsteps by asking nine nonprofit hospitals and universities to make payments of $24 million; roughly 25% of the real estate taxes they would pay if they were for-profit. The reason for this increase? The city is currently dealing with $110 million budget deficit and, according to Mayor Taveras, nonprofits control nearly 40% of real estate in Providence. This would effectively negate a 2003 payments in lieu of taxes (PILOTs) agreement with the four universities targeted under this new plan (Brown, Johnson and Whales University, Rhode Island School of Design, and Providence College).
Meanwhile, DC Mayor Vincent Gray has thought of a different way to get payments from nonprofits. He wants the governing council to pass a law that would impose a 6% tax on tickets to art institutions. If passed, the tax would impact over 200 nonprofit organizations in DC.