If a city is facing a major budget problem, should it start forcing tax-exempt entities such as universities, colleges and hospitals to start paying property taxes? Providence, R.I., Mayor Angel Taveras thinks so.
The Providence Journal reports the city faces a $110 million deficit and enormous pension problems as the recession continues to take its toll. To help fix these problems, Taveras unveiled a plan earlier this month to tax nine tax-exempt hospitals, colleges and universities, including Brown University, Providence College, Johnson & Wales University, and the Rhode Island School of Design.
….Like Madison, Providence is a capital city. Its population is about 175,000, although the Providence metro area is home to 1.6 million.