The City of Boston has formally asked nonprofit organizations to pay up to 25 percent of the property tax bills they would face if they were not tax-exempt, The Boston Globe reported. Many nonprofits already make "payments in lieu of taxes" in recognition of the demands their students and faculty members place on city services, so some nonprofit leaders (including some of those in higher education) are not concerned by the formal request from the city. Others, however, see the potential for such demands to erode their nonprofit tax status.
The colleges and universities already making voluntary payments -- according to a Globe analysis -- would generally have a ways to go to meet the level demanded by the city. Harvard University currently pays $2.1 million to Boston, but the city wants $5.8 million. Boston University pays $5.1 million now, but the city wants $6.8 million. Northeastern University currently pays a little more than $30,000, but the city wants $4.3 million.