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Providence's mayor to testify on college, hospital taxes

12:28 PM Tue, Jun 23, 2009 |
Philip Marcelo    Email

PROVIDENCE, R.I. -- Mayor David N. Cicilline will testify before the state House and Senate Finance committees on Tuesday afternoon in support of two controversial pieces of legislation that his administration has developed that would tax private colleges and hospitals.

One bill, submitted by House Majority Leader Gordon D. Fox (D-Providence), would have private colleges pay their host city a "student impact fee" equivalent to $150 per student per semester (Rhode Island residents and public universities would be exempt).

The other bill, submitted by Rep. Thomas C. Slater (D-Providence), proposes to give cities and towns the option of collecting up to 25 percent of the commercial tax rate from non-profit entities that own $20 million or more of assessed property. Those nonprofits, such as colleges and hospitals, would otherwise pay nothing on their tax-exempt lands.

In the Senate, the bills are being sponsored by Sen. Maryellen Goodwin (D-Providence).

Cicilline has argued that non-profits make up nearly 40 percent of all appraised property value in Providence, but contribute less than one-percent to the city's budget. Private colleges and hospitals alone in the city own $3.2 billion in real estate, he has said.

"Although private colleges and non-profit hospitals make enormous contributions to cities and towns, the imbalance between their municipal contributions and the burden on local property taxpayers has become too great," he said in a statement issued Tuesday morning.

The House Finance Committee meets at 1p.m. in Hearing room 35. The Senate Finance Committee meets at 3 p.m. in Hearing room 211.

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Comments

m said:

Excuse me Mr. Mayor,

If you want to tax the hospitals, please bear in mind that MOST of the write offs for the Providence hospitals come from Providence citizens who either cannot or won't pay their hospital bills. I think maybe in response to your new tax, the hospitals should start billing the city for all the dead beats who use the emergency rooms in place of a primary care doctor. Then they could use that money to pay your new tax. (Careful what you wish for...)



John from Providence said:

Looking for addition money? Then why is the projected budget reportedly up 12% over the previous budget? Shouldn't we be tightening the belts?



John Stark said:

Great line, Mr. Mayor. But let's change just a couple of words: "Although welfare recipients make enormous contributions to cities and towns, the imbalance between their municipal contributions and the burden on income taxpayers has become too great." In other words, would the mayor use the exact same words and logic to endorse welfare cuts, or higher taxes on the city's takers? I think not. It is, however, an indirect hike in tuition.



David said:

True to form, Providence and the state are always looking for ways to take money from individuals, companies, and now hospitals and schools. Since working stiffs who get screwed by the pols (mainly Dems) keep living the state, eventually the Dems will run out of suckers to take money from. It's happening now and will only get worse as more and more productive people leave RI for better places to live and raise a family. I wonder at what point the greedy pols will get a clue? (and all the socialists, welfare low lifes, and dead beats)



W said:

If he's going to tax hospitals and schools, which actually contribute something to RI, it seems blatant favoritism not to go after the churches as well.



Dave said:

So, this means that the college students will have a vote in upcoming elections? I think vaguely remember something written by our Founding Fathers about; no taxation without representation.



DM said:

These institutions should be held up as shining jewels of the city...a growing and vibrant academic medical center and an Ivy League world class university, not taxed into the ground.
Maybe the hospitals should send the Mayor the bill for all the unpaid care they deliver to the residents of the city. I mean, we're trying to be fair, aren't we?
Shortsighted thinking...gotta love it.



Tom said:

If the mayor would like to call it a 'Student Impact Fee' then he should be prepared to write checks to the colleges since they actually bring money INTO the city!!



Jeff said:

I trust that the non-profits get an equal opportunity to explain to the legislature why the mayor's idea is not the way to go. Short term budget balancing focus will never work either to balance the fiscal year budget or to have these institutions as strong partners in the continued economic development of Providence and the State.




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