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Bill would create fee for property owners who are now tax-exempt
Spossey was responding to an announcement Tuesday that state Rep. Tim Solobay, D-Canonsburg, and state Sen. Wayne Fontana, D-Pittsburgh, are preparing legislation that would give municipalities the option of continuing existing voluntary agreements with tax-exempt entities or imposing a fee based on the square footage of the properties.
"I would definitely have no objection" to such legislation, said Spossey. "In fact, I look forward to it happening."
According to the mayor, the additional revenue would help to offset the burden now being carried by the city's private taxpayers, especially during these times when the city is financially strapped and could be on the verge of filing for Act 47 bankruptcy.
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The proposed legislation would enable the city to levy a fee on its tax-exempt entities, including Washington & Jefferson College and Washington Hospital.
Spossey said 36 percent of the properties in Washington are tax-exempt, of which the college constitutes 11 percent.
"It would be wonderful," said Spossey. "But, right now, we have to put a budget together with what we have."
In a news release, Solobay said local governments are required to provide such services as police and fire protection and road maintenance whether or not a property pays taxes.
"This makes it difficult for cities and municipalities with a large number of tax-exempt properties to raise the revenues they need to support such services," he stated.
Both Solobay and Fontana acknowledged that the legislation would have to be written in such a way so that small nonprofits aren't hit hard.
"While these bills would require considerable amendment before passage, they at the very least begin a dialogue at the state level on the impact of tax-exempt property on the fiscal health of Pennsylvania's communities," added Fontana.
Spossey said that while he applauds the legislators for their efforts, he can't foresee any changes in the near future.
"It's hard to get excited until I see real movement on the bill," he said.
What he does foresee is the matter ultimately being argued in court, after his own personal experience.
In the late 1990s, the city challenged W&J's tax-exempt status.
"We fought it the whole way to the Supreme Court, and we lost," he said. "They're not just going to roll over and let it happen."
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Fair Idea : 11/25/2009
However, I would assume that the bill relates to organizations of the larger caliber where those taxes can be absorbed more readily. Taxing the small "helping citizens get a leg up" already hampered by budgetary restrictions would be counter-productive.
when will government have enough : 11/25/2009
Just keep increasing taxes, the only solution for a socialist.
Taxing non profits : 11/25/2009
I believe the comment"Both Solobay and Fontana acknowledged that the legislation would have to be written in such a way so that small nonprofits aren't hit hard." Should be carefully looked at as this could possibly hurt Township Volunteer Fire Companies, who are non profit, who already struggle for every dime and Mr. Solobay should better than anyone know that, being a volunteer fireman himself. Other organizations such the City Mission, Salvation Army, Goodwill, local churches, will they all be taxed or charged as well? These are things that any municipality should consider when thinking about charging the non profits for the hard earned money they receive. And also remember the community that will suffer due to this action. As usual, its the real people in need thatare hit the hardest. The City Council should stop thiking of ways to pick the pockets of the local community, all these actions do is drive people away from the city not encourage them to come to the city. We all should think about this one....
the problem : 11/25/2009
How does one designate the "small" from the large legally. Even if passed, the legislature will end up taxing large churches like IC, groups like the City Mission and so on. The devil is in the details and we need to see the details. Where was the information on the bill number and the details. How are small non profits protected specifically? Which non-profits are hit? Are churches? City Missions? Christian Outreach? Gives us the details please.
Had enough also : 11/25/2009
Socialist or Laziness? As I read this story, my blood pressure is rising. More taxes from raising the city's earned income tax, you have to be kidding me. Spossey, do you actually know the people of Washington and have you ever cruised through the streets here. I live here because this is what I can afford. Our town need a BIG makeover. Why don't you consider 401K's for your employees like the rest of the world. Why don't you consider finding better ways to invest the money. We already know the stupidity of not investing in Tobacco because Burns doesn't like smoking, which lead to a 40 precent drop in the investmnets of the years. Now that the Stock Market is improving, maybe better investing practices are warranted. Open you eyes and get to know your citizens. We just don't have the money to fuel your black hole. We have our own bills and 401K's to fund. We cannot afford your way of business anymore. Get Creative, that's what we pay you for, not ot be LAZY!
accountability : 11/25/2009
We should demand accountability from our elected officials. Demand it, or forcibly impose it. Get creative people. I know you can do it.
Are you kidding?? : 11/25/2009
I suppose that certain city officials would welcome this as it would help their cause easily without them having to come up with a real working idea.
Not the answer : 11/25/2009
Taxing the non profit agencies is not the answer to this problem. Things need to be made attractive to help draw businesses and people into the city and surrounding areas not push them away. If you start taxing non profit agencies then that will be the thing we will see collapse. I cannot believe someone, especially Tim Solobay would support something like this. Shame, Shame to our elected officials. Who may not be elected next time.....
W&J : 11/25/2009
Didn't the city try this baloney years ago with W&J--and lost in court? Get with it.
baloney : 11/25/2009
it's not a fee....it's a TAX...plain and simple.....typical democrats....tax...tax...tax! wake up people!!!!!
Fees or Taxes? : 11/27/2009
Police, fire protection and road maintenance are not free services, but are enjoyed by all whether or not they help pay for it. There should be some type of fee assessed to every organization, big or small, for their proportionate share of these expenses. The devil is in developing the fee structure. Why should those now paying for these services continue to be the only ones paying for them?
To tax poor : 11/28/2009
You said, " We cannot afford your way of business anymore. Get Creative, that's what we pay you for, not ot be LAZY!" Investments and the stock market are not getting better. The stock market only improves for a week or so, then it drops significantly. If you have any sure ways to get better investments, please let the city and the county know. Just don't criticize while keeping that valuable information to yourself.
