Tax Exempt Property and the Cities: Striking a Balance

Richard D. Pomp, Tax Exempt Property and the Cities: Striking a Balance, 7 J. Real Est. Tax'n 50 (1979)

12 Pages Posted: 6 Sep 2017 Last revised: 20 Sep 2021

See all articles by Richard Pomp

Richard Pomp

University of Connecticut - School of Law; Independent

Date Written: 1979

Abstract

All states grant a property tax exemption to certain non-profit organizations. Tax-exempt property further erodes many cities’ tax bases. Connecticut has recently adopted legislation in an attempt to solve this problem. This legislation, proposed by Professor Richard D. Pomp, provides municipalities with state subsidies for property taxes lost due to tax-exempt hospitals and colleges.

This article is the reprinted testimony of Professor Pomp before the Connecticut State Finance Committee. Professor Pomp outlines the proliferation of tax-exempt property in Connecticut, which contributes to forgone revenue for major cities. Tax-exempt property not only results in diminished tax revenue, but also imposes additional costs on cities. Professor Pomp further explains that tax-exempt organizations provide no greater net economic impact than businesses that pay the property tax. Professor Pomp analyzes three relevant questions that must be asked when considering alternatives to the current system. He concludes by proposing seven alternative options: (1) municipal permission before any taxable property can be purchased by a tax-exempt organization, (2) phase in the exemption whenever taxable property is bought by a tax-exempt organization, (3) phase out the exemption after a certain period, (4) limit the number of acres qualifying for the exemption, (5) set a dollar limit on the amount of property that can be exempt, (6) impose a user charge, or (7) state payments to jurisdictions containing tax-exempt property in excess of the state average.

Keywords: tax, law, tax law, property, exemption, non-profit, Connecticut, subsidies, tax reform, cities, legislation,tax-exempt

JEL Classification: k34, h70, h71, h20, h21, h25

Suggested Citation

Pomp, Richard, Tax Exempt Property and the Cities: Striking a Balance (1979). Richard D. Pomp, Tax Exempt Property and the Cities: Striking a Balance, 7 J. Real Est. Tax'n 50 (1979), Available at SSRN: https://ssrn.com/abstract=3009479

Richard Pomp (Contact Author)

University of Connecticut - School of Law ( email )

65 Elizabeth Street
Hartford, CT 06105
United States
860-570-5251 (Phone)

HOME PAGE: http://www.law.uconn.edu/faculty/rpomp/

Independent ( email )

860-983-8341 (Phone)

Do you have negative results from your research you’d like to share?

Paper statistics

Downloads
31
Abstract Views
356
PlumX Metrics