Friday, July 6, 2012
The Chronicle of Philanthropy reports that the Pittsburgh City Council and a nonprofit coalition have agreed to a plan to generate $5.2-million to $5.4-million of payments in lieu of taxes over two years. Says the story:
About 40 nonprofit groups will contribute to the Pittsburgh Public Service Fund, which supplied a like amount to city coffers in in 2010-11. Some council members have called for a sharp increase in charities’ payments in lieu of property taxes, and the new measure included an amendment directing finance officials to determine how much the city spends on police, fire, and other services for tax-exempt entities.
The participating groups, many of them smaller charities, represent a small proportion of the city’s tax-exempt organizations. Nonprofits “are good partners, but they could be better partners,” Councilman Ricky Burgess, the panel’s finance chairman, said at Monday’s meeting.
According to the Chronicle, another PILOT plan is being considered by city council members in Memphis, where approximately 30 percent of the city’s property reportedly is held by nonprofit entities.