This is a very interesting blog post about how some municipalities are blackmailing (not in a literal sense) nonprofits to pay some local taxes or face possible loss of their local real estate tax exemptions. Unfortunately, many nonprofits are at risk of being “hit up” by cash starved towns.
By: Robert I. Evans & Avrum D. Lapin
May 22, 2012
Today’s continued economic uncertainty has prompted bold actions by local governments as they struggle to secure necessary income while faced with substantial budget shortfalls, unpredictable tax revenues and critical services in dire need of funding. In this era of municipal belt-tightening, a rapidly growing number of local officials now look at previously untapped sources of revenue: nonprofit institutions.
Since Boston’s Mayor Thomas Menino first broached the issue several years ago, other communities – small, medium, and large – have followed suit and have turned to some of the country’s most significant nonprofits to augment the current tax base. This has become an unprecedented source of revenue as well as debate, especially as questions arise around the endowments and land holdings of some of the country’s largest nonprofits, with universities, museums, hospitals and other community…
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