Councilman John J. Lombardi (Ward 13) has sponsored a resolution calling for the establishment of commission to study tax-exempts. The resolution has 12 co-sponsors and is expected to be endorsed by the entire Council at Thursday’s Council meeting.

The Commission will include members from the business community, tax-exempt institutions, a community organization, a labor organization, and two Council members, as well as a mayoral appointee. One of the members representing the business community will chair the Commission. “The membership on the Commission has to be inclusive and well-rounded so that the City receives realistic recommendations that have broad-based support,” Lombardi explained.

According to the resolution, the recommendations Lombardi is seeking will include proposals “to establish a standard level of contributions by major tax-exempt institutions.” The recommendations will be based on the findings of the Commission with regard to 1) the costs associated with providing City services to tax-exempt institutions; 2) a review of the financial and programmatic contributions made by tax-exempt institutions to municipalities in selected cities nationwide, including best practices in public-private partnerships; 3) standard level of financial and programmatic contributions to be met by all large-scale tax-exempts in Providence;  4) methodologies for valuing community partnerships made by tax-exempt institutions; 5) necessary City and State legislation; and 6), any additional means to mitigate the impact of tax-exempt institutions on the City’s tax base, in order to establish a fair and equitable approach to generating revenue to support City services.

The Commission has a 180-day timeline in which to make its recommendations to the Council.

Lombardi stated that, “As referenced in the resolution, tax-exempt institutions and taxpayers alike benefit from City-provided services, yet other than voluntary payments made by four colleges and universities, tax-exempts do not contribute to the cost of these services. At the same time,” Lombardi continued, “tax-exempt institutions are intrinsic to the growth and success of our capital city. The City must do everything in its power to bolster both its neighborhoods and its tax-exempt partners.”

As Council President, Lombardi established a Special Commission to Study Tax-Exempts in February 2003, which had a much broader charge to look at the impact of tax-exempts on Providence’s tax base. In June 2003, Mayor Cicilline announced the voluntary payment agreement with the four largest private colleges and universities.

The resolution will be officially introduced at the July 2, 2009 Council meeting.