Taxing (or Fee-ing) Non-profits

I read this article this morning about Boston (and other cities) turning to nonprofits to increase revenue for the city. I have mixed feelings...

Squeezed Cities Ask Nonprofits for More Money Michael Cooper, New York Times, 5/11/11As recession-racked cities struggle to balance their budgets with everything short of feeling behind sofa cushions for loose change, a growing number are seeking more money — just don’t use the word taxes — from nonprofit institutions that occupy valuable land but by law do not pay property taxes.

On the one hand of course, I think it is outrageous to put burdens on nonprofits. They do great work and are even more essential as governments cut back on social services to save costs.

On the other hand, I grew up in Baltimore, a city that struggles to have money to pay for basic things like quality public education. It is also a city that is a hub for nonprofit organizations, schools, and hospitals, so it loses out on a lot of taxes in this way. Johns Hopkins takes over half the city (*not intended to be a factual statement), and I think that they should be contributing to the wealth of the city so all can enjoy it. Especially because most of the people benefiting most financially from the institution live outside the city, and don't even pay city income and property taxes... but that's another issue that you'll never hear the end of from me.