By Dave Lucas
http://stream.publicbroadcasting.net/production/mp3/wamc/local-wamc-904226.mp3
Albany, NY – As times and the economy change, governments are looking for more ways to fund programs and services: they're turning an eye toward non-profits, exploring the possibility of imposing taxes on entities that have never before been subject to them. Capital District Bureau Chief Dave Lucas reports.
Among revenue-raising proposals being researched is one championed by New York State Senate Majority Leader Pedro Espada ... It would require non-profits to pay into the real estate tax base so that tax relief would be spread through a community. Plans like Espada's are being seriously considered by lawmakers. Initially, churches would be exempt from the tax measures, but that could change once a precedent is set. NYS Catholic Conference spokesman Dennis Poust says such taxes would cause the loss of many great services to the state.
The Espada plan folows the model developed by Lt. Governor Richard Ravitch when he was with the Metropolitan Transportation Authority. Ravitch created a payroll tax for all New York metropolitan-area employers, including nonprofits, as a new revenue stream for the MTA. The Adirondack Council's John Sheehan says his group is already paying some taxes on propery the council owns but rents out to other users.
In the Capital Region, Albany and Troy stand out as cities where the tax burden paid by home owners could be lowered if some taxation of non-profits was allowed - Keith McDonald, Commissioner of Assessment and Taxation for the City of Albany, says his city follows current state law to the letter. Albany reviews annual renewal applications from non-profits. McDonald is waiting for legislators to change the New York State Real Property Tax Law.
At the state level, no action on any legislation is expected during the current session. A "committee on public private budgetary cooperation" is in its formative stages in Albany - a yet-to-be-appointed 11 member panel will have the daunting task of coaxing "voluntary contributions" out of non-profits. Council members are hoping to seat 4 panelists who would represent local non-profits, but concede it will take months of research before an official report will be issued sometime in 2011.