Thursday, July 12, 2012

Has the Tax-exemption Rumble Started in Pennsylvania?

A while ago I posted about a recent Pennsylvania Supreme Court decision on tax exemption that I speculated might reopen the door to property exemption challenges.  The President of the Pittsburgh City Council might have kicked that door open a bit recently.   A story posted on Pittsburgh's public radio station web site notes that city council president Darlene Harris is "investigating whether the city could legally challenge the tax-exempt status of large nonprofits in Pittsburgh."  Harris apparently specifically referred to the recent Pennsylvania Supreme Court decision as grounds for her investigation.

“What some call ‘nonprofit’ is not necessarily all nonprofit,” said Harris. “If you can pay for having commercials during Super Bowls, if you can pay for your name to be on the top of the highest buildings in the City of Pittsburgh… There are doctors that will not see poor people.”

It appears that the City Council is not exactly happy with the PILOT deal struck with a consortium of Pittsburgh nonprofits that we blogged about last week.  The story quotes council budget director Bill Urbanic, who stated “If these were ‘taxable organizations,’ the amount of payroll tax we would receive would be somewhere around $22 million… Also, the real estate, with the new assessment, is probably somewhere between $35 to $50 million.  So, you’re looking at somewhere around $60 to $70 million that we’re forgoing, and what we’re getting instead is $2.6 million annually.”

Has the rumble over property tax exemption started in Pennsylvania?

JDC

 

http://lawprofessors.typepad.com/nonprofit/2012/07/has-the-tax-exemption-rumble-started-in-pennsylvania.html

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FYI: Pittsburgh is currently spelled with a final "h".

Posted by: Cindy | Jul 13, 2012 9:22:12 AM

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