Cicilline pushes Fair Share plan at State House

PROVIDENCE—Providence Mayor David Cicilline pushed his so-called Fair Share plan before the House Finance Committee on Tuesday.

The mayor wants to change the tax-exempt status of the city’s private colleges and most of its hospitals, saying they need to do more to help Providence taxpayers.

The bill could mean millions of dollars for city and towns statewide by forcing large nonprofit entities pay a fraction of the property taxes from which they’re exempt.

Cicilline said the four hospitals and the four private universities in Providence own $3.2 billion worth of property that would normally generate about $88 million in taxes for the city.

“I’m not asking that we be able to realize all of those revenues, but they have to do their part,“ Cicilline said.

Related Link: Text of House Bill H6214 (pdf)

But college leaders said they agreed to a 20-year payment in lieu of taxes program with the city five years ago.

“We built into the agreement that our payments would go up at little bit over the 20-year agreement,“ said the Rev. Brian Shanley, president of Providence College. “From our side, we’re strapped financially. They city’s strapped financially. We’re not going to the city and saying ‘Hey, we can’t pay our fair share anymore.‘ We’re paying our fair share.“

Colleges have seen their endowments decrease during the economic downtown.

The bill could also benefit Smithfield and Newport, which also host colleges and hospitals.