Strapped Cities Hit Nonprofits With Fees

And yet, the US govt is fine with two active wars, and bases in hundreds of locations, and military budgets for planes, warships, SDI, etc., and tax-cuts for billionaires. Priorities, I guess. Though, religions are a business, and should be treated like a business. Small non-profits shouldn’t bare the burden alone.

Facing budget gaps and an aversion to new debt and taxes, states and local governments are slapping residents with an array of new fees—and some are applying them to nonprofits.

That marks a sharp departure from long-standing tax exemptions mandated by state law or adopted on the theory that churches, schools and charitable organizations work alongside governments to provide services to the community.

The issue is on display in Houston, where some flood-prone roads are in such disrepair that signs warn drivers, “Turn around, don’t drown.”

Houston’s taxpayers in November narrowly voted to adopt a “drainage fee” to raise at least $125 million a year toward the cost of improving roads and storm-water systems. The city will charge fees to property owners, and it won’t grant exceptions to churches, schools and charities.

The city has been tightening its budget. “We’re cutting up the city’s credit cards,” says Mayor Annise Parker. “Everyone who contributes to drainage issues has to share in the cost of correcting those issues.”

A number of groups—including schools, businesses, churches and senior citizens—are demanding exemptions. “We’ll defeat this,” says David Welch, of the Houston Area Pastor’s Council, who plans to lobby state legislators in January. “This is really a tax. It is the first time that churches would not be exempt from property taxes,” he says. Some opponents have filed suit claiming the ballot wording was misleading.

At a group called the National Council of Nonprofits, Tim Delaney, chief executive, says, “Governments are taking their public burdens and putting them on the backs of nonprofits, at a time when the demand for our services is skyrocketing.”

Some cities are charging religious groups property taxes on buildings no longer used for worship. Other localities are soliciting voluntary contributions. Albany, N.Y., recently passed an ordinance asking schools, hospitals and other nonprofits to contribute to city services.

As municipalities try to bridge budget gaps with fees that also hit nonprofits, some residents are kicking up a storm. Chicago and Dade City, Fla., scrapped proposals for drainage fees after protests from these groups. Cleveland suspended its proposal after community groups and businesses sued.

(click to continue reading Strapped Cities Hit Nonprofits With Fees – WSJ.com.)

Since the Republicans won the 2010 election with the help of the anti-tax know-nothings, let’s see how many more stories like this one we’ll read.

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