Colleges owe a lot to city
Boston’s nonprofit institutions need to pay their fair share.
The Payment in Lieu of Taxes (PILOT) program is supposed to make that happen as nonprofits do not currently pay property taxes and 49 percent of city land is occupied by nontaxable entities.
It is not a new problem, but as the Herald’s Brooks Sutherland reports, the PILOT Action Group says its new report shows that the 49 largest institutions in the city have failed to pay over $77 million in promised payments under the PILOT program. The report states that in fiscal 2018, only 26 percent have paid the promised amount.
According to the report, educational institutions are among the biggest culprits. The report states that under PILOT, Harvard was requested to pay $6,091,588 for 2017 but actually contributed only $3,201,702. Boston College paid $335,252, which is $1,410,098 less than the requested amount in 2017; while $8,052,510 was requested from Boston University and $6,100,000 was received. Northeastern University paid $1,300,000, which was reported to be $4,181,710 less than the requested PILOT amount.
Enid Eckstein, who coauthored the report, said these are all institutions that can afford to pay.
“We believe very much that these institutions have a responsibility in our city,” Eckstein said. “We believe the PILOT program was a start when it was established seven years ago to look at what is the responsibility of these institutions to our city.”
It is ridiculous that these institutions are not meeting their obligations and thus depriving Bostonians of valuable city services and opportunities. It is unfair on its face.
It’s even more outrageous that the universities benefit from all the resources the city has to offer without paying a dime in property taxes in the first place.
City Councilor Annissa Essaibi George told the Herald the issue is a “fairly significant challenge that the city is facing.”
“Our residents across the city regularly have their tax value reassessed,” Essaibi George said. “We should hold institutions accountable. These are institutions with very successful business models, but because of their label, they’re avoiding taxes. These are dollars that could contribute to the city.”
Mayor Martin J. Walsh must do more to compel these institutions to do the right thing. Smaller businesses and private citizens deserve some relief, and our universities can certainly afford to contribute their due amount.
In a related note, perhaps it’s time to rethink the concept of “tax-exempt” institutions. Our universities are colossal businesses, and they charge monstrous tuitions. According to a 2017 Boston Business Journal article, Suffolk University’s endowment is $232 million, Boston University’s is $1.9 billion and Harvard’s is $37.1 billion.
Sounds like a NINO (Nonprofit in Name Only) situation if there ever was one.
Things are good on campus. Now it’s time to pay for the various city services and resources that keep it that way.