Smith Hill Resident Advocates a Tax Revolt
In a letter to the Editor, Edward J. Collins, former President of the Smith Hill Business Association, explains his opposition to the proposed expansion of Johnson and Wales University along the Providence River.
Exempt Institutions Put Load on Taxpayers
(Published in the Providence Journal, August 15, 2008)
I was stunned and disappointed reading former Mayor Joseph R. Paolino Jr.’s opinion piece on July 11 advocating the selling of valuable land along the Providence River to Johnson & Wales (“Colleges and hospitals are vital to Providence economy”).
As the chief executive of Providence for seven years, Paolino is keenly aware that tax-exempt institutions have caused enormous hardships for the taxpayer. He argues that jobs will come into the city, recession-proof services will be offered and the city’s renaissance will be enhanced. Knowing that the city is approaching 55 percent of tax exempt property and encouraging this move is puzzling. What is it in Economics 101 that Paolino got and I missed?
What was not mentioned is that in the last six years that number of tax-exempt properties has increased and our taxes have nearly doubled. We as landlords cannot double the rents. Even a modest increase causes some families to move. These are good hardworking people who can’t cope with the added burden.
To Mayor David N. Cicilline’s credit, he is cool to the idea of allowing Johnson & Wales to expand along the Route 195 corridor. I salute him also for doing what none of his predecessors would do. He finally broke the ice and secured some money from Brown, Providence College, Johnson & Wales and the Rhode Island School of Design. Unfortunately, the agreed upon amount of $50 million over 20 years falls far short when one considers the valuable properties they own. When tax-exempt institutions acquire income-producing property through purchase or gift, they must pay the taxes due and get off our backs.
A Federal Hill businessman recently told me he stays awake nights concerned about the tax on his building and the future of his business with the prospect of increased taxes. For sure, the tax-exempts do not have his concerns. What incentive is there for a businessman to set up shop in Providence?
Recently, out of sheer frustration, I erected a six foot by four foot sign in front of my property on Orms Street suggesting Providence needs a tax revolt. I further state my property pays more tax than Brown University on its income-producing real estate.
Who do we turn to for help and relief? Certainly no one on the city council has demonstrated any concern. It is clear the general assembly doesn’t have the will to change this antiquated criminal practice that is the ultimate example of unfairness.
Our founding fathers did not intend for wealthy institutions of higher learning to acquire massive amounts of valuable property and not pay the tax due — and expect the citizenry [to shoulder the] burden. In a democratic society, the anger of the people can bring about change. Hopefully, we will have more responsive people in government who will do it before tax-exempt property reaches 60 to 65 percent.
Edward J. Collins
Providence
(Collins is past president of the Smith Hill Business Association.)
October 30th, 2008 at 5:03 am
saint statue…
WOW keep up your work…