PROVIDENCE — In an effort to broaden Providence’s tax base, City Council Majority Leader Terrence M. Hassett is preparing a proposal that will seek authority from the General Assembly to establish an alternative tax rate for private tax-exempt institutions that own vast property and land in the city that would otherwise be subject to property taxes.
The special rate, and any institutions it would be imposed on, have yet to be determined, but Hassett proposes to fill the tax gap that has been caused by the expansion of some institutions in Providence.
“Expansion for some of our larger tax exempt institutions is necessary,” Hassett said in a press release issued July 20. “But the reality is where there is expansion, there is exemption. This is the time to undertake such discussion and then act to resolve a never ending problem.”
Hassett, who was unavailable for comment, said in the release that if the proposal is approved, the city would be less reliant on state revenue if it could raise more of its own.
Father Angelo Carusi, pastor of Blessed Sacrament Church, said that if the parish had to pay taxes on the church property and parish school, it would significantly impact the amount of financial resources allocated for community outreach and school programs.
“Our available money for tuition assistance would certainly be lower,” he observed, adding the Blessed Sacrament School attracts students from all over the city, representing a diversity of cultural and religious backgrounds.
“Blessed Sacrament is a beacon of light for this neighborhood,” Father Carusi said. “If we had to use the money we use for community outreach for taxes, our beacon of light would grow dim.”
Father Joseph Santos, pastor of Holy Name of Jesus Church, Providence, added: “It is not surprising at this time in our history as a member of these United States that Mr. Hassett should propose taxing educational and religious institutions in order to find revenue. Over the past several decades and even more so in the past few years, both education and religion have been continually devalued in public life.”
