Conn. Legislative Leader Calls for Taxing Big Nonprofits

Connecticut’s House speaker has submitted legislation that would make the state’s nonprofit hospitals and colleges fully liable for property taxes on their holdings, writes the New Haven Register.

Speaker Brendan Sharkey termed the bill a first step in fixing a state tax system that particularly hurts Connecticut towns, which rely on property taxes but have seen more land become tax-exempt as large nonprofit institutions grow. Under current law, municipalities can lobby for funds from a state program that can pay as much as 77 cents for each dollar of tax foregone but which this year is expected to pay 34 cents.

Mr. Sharkey also cited what he said was a blurring of lines between big nonprofits and for-profit entities. “Most private colleges now are multi-multi-million-dollar operations. It is not uncommon to see seven-figure salaries paid to their top executives. They are big operations employing lots of people, providing economic benefits, but also running like a corporation,” he said.