Large tax-exempt landowners would have to pay their host cities fees based on the size of their buildings, under legislation that state Sen. Wayne Fontana plans to introduce next week.
The Brookline Democrat’s proposal would add another wrinkle to the decades-old debate over nonprofit institutions and their obligations to cities and towns — an issue that has been stoked to a boil by Pittsburgh Mayor Luke Ravenstahl’s proposed 1 percent tuition tax. It comes days after state Rep. Paul Costa, D-Wilkins, a Point Park University trustee and faculty member, said he’ll try to pre-empt the tuition tax.
Mr. Fontana said it’s time to “at least get a discussion or a debate going on what nonprofits should do. It’s my opinion that they have a financial obligation to the city or municipality for the services they get.”
The formula he plans to put into legislation co-sponsored by Rep. Tim Solobay, D-Canonsburg, would exempt the first 50,000 square feet of floor space of a given nonprofit entity’s buildings, meaning small organizations would likely be unaffected. Any square footage above that level would be assessed at $100 per 1,000 square feet. Organizations could escape the fee by entering into voluntary agreements with their hosts, he said.
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