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County Council Passes Bill To Charge Nonprofits

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Nov 6, 2009 8:54 pm US/Eastern

County Council Passes Bill To Charge Nonprofits

PITTSBURGH (KDKA) ― Allegheny County Council has passed a bill aimed at getting money from local nonprofits to ease the tax burden on county residents.

If enacted the bill could generate millions based on a $200 fee for every 1,000 sq. ft. of structure on tax-exempt land.

But even though the bill is scheduled to take effect in January, a lot can happen before then.

"The nonprofit organizations that do turn big profits we feel that it's their time to help us out. Not necessarily will it have to be in payment of 'you owe us' it's more like maybe a donation to county parks maybe the community colleges which alleviates the pressure from our own budget," Allegheny County Councilman Nick Futules said.

He was among 14 council members who voted for the bill.

County Council has been thinking about it for two years. The City of Pittsburgh got $13 million from nonprofits between 2005 and 2007, even as it had a public debate with UPMC over whether its support for the Pittsburgh Promise was contingent on such payments to the city.

UPMC Spokesman Paul Wood points out that UPMC contributes to the region in many ways – not all of which have received a lot of publicity.

He says UPMC donates $518 million to various charity programs along with its $100 million contribution to the Pittsburgh Promise tuition program and that its 50,000 employees generate $100 million in state and local taxes.

Some on county council may have been inspired to move on this bill in part because of UPMC's decision to close UPMC Braddock.

"When you use the word, 'profits,' people feel that you're a nonprofit organization and you shouldn't claim the fact that you've made anywhere from one to three hundred million dollars in profits you're afraid of losing 26 [million] in one location," Futules said. "This was a factor last night but the vote really had nothing to do with Braddock Hospital I believe."

County Executive Dan Onorato has proposed a plan that would generate money from nonprofits too but based on more of a negotiated deal rather than a legislated mandate.

Onorato's office says the county law department is looking into the legality of the council bill. That could affect whether Onorato signs it.

(© MMIX, CBS Broadcasting Inc. All Rights Reserved.)

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