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Saturday, April 21, 2012

Madison's Mayor Soglin talks about letting nonprofit property owners make voluntary payments instead of taxes.

Voluntary payments? We were just talking about that in the previous post! Who makes charitable contributions to the government? What is Paul Soglin talking about?
Such a program, which would likely exempt smaller nonprofits, could produce several million dollars in annual revenue as service costs rise, state financial support remains unpredictable, and political pressures and changes in state law limit the city's capacity to increase taxes.
This is about bringing in new money, not switching current taxpayers into an optional approach.
The city has roughly 73,800 parcels valued at $21.5 billion, said Dave Gawenda, city treasurer. That includes 1,201 exempt parcels — excluding city, Dane County and Madison schools property — valued at $5.7 billion. If state and university property is excluded, the city exempts nearly $1.5 billion in nonprofit property, which would produce about $15 million in revenue for the city if fully taxed.
Currently, 17 tax-exempt entities have negotiated arrangements with the city — usually after a change to the property — to make payments in lieu of taxes that will total $877,000 for 2012.

No one envisions the city will seek to get the full tax payment from all nonprofits.

In Boston, under its new program, nonprofits that own property valued at more than $15 million are asked to increase payments over five years until they reach 25 percent of what they'd pay if they didn't have nonprofit tax status, the city's website says. The system also gives nonprofits credits for providing benefits to the community.
Can someone explain to me why they pay voluntarily? It's not truly voluntary, is it? There's some lurking coercion, some extortion, isn't there?

IN THE COMMENTS: Irene said:
"Mandatory volunteerism" is the progressive's way of treating everyone like children. It's one of my favorite oxymorons.

Schools first introduce this approach by requiring children to participate in mandatory duties shaded vaguely as "voluntary" activities that benefit the community. Example: "Earth Day cleanup" for the grade schoolers or "orientations" for first-year law students that require arboretum clean-up or Habitat-for Humanity work.

If tax payment is shrouded in "voluntary" language, it makes the maliable feel like they are participating in the general good. Part of the progressive community. Part of the group think.

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