Title
Resolution authorizing the Mayor, the Director of Finance and the City Solicitor to enter into agreement or agreements with post-secondary institutions of purely public charities for the purposes of collecting payments in lieu of taxes.
Body
Whereas, “The Institutions for Purely Public Charity Act of 1997”, known as Act 55 exempts organizations deemed as charitable by the Commonwealth from their real estate and certain other tax obligations; and
Whereas, it is estimated that 36% of the property in the City is exempt from real estate taxes; and
Whereas, the City's largest revenue source is the real estate tax; and
Whereas, there are approximately 143,000 parcels of land in the City, and the value of the land and the improvements on said land exceeds $21 billion dollars; and
Whereas, the fewer than 400 parcels owned by just the University of Pittsburgh, Carnegie Mellon University, Duquesne University, Carlow University, Chatham University, Community College of Allegheny County, Point Park University, Robert Morris University represent 2/10 of 1% of all land in the City yet have a current assessed value exceeding $1.3 billion dollars, 6% of the assessed value of all 143,306 parcels in the City and are exempt from real estate taxation; and
Whereas, were these organizations subject to the real estate tax, the above-named institutions would be legally required to remit to the City $14 million dollars and the School District of Pittsburgh $18 million dollars, annually, based on their current assessments; and
Whereas, these institutions, and their students benefit disproportionately from the City's obligation to provide services to everyone in the City; and
Whereas, Council believes, unequivocally, that the City's tax-exempt educational institutions have a moral obligation to contribute directly to the provision of these vital City services;
Be it resolved by the Council of the City of Pittsburgh as follows:
Section 1. The Mayor, the Director...
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