<p>Per an article in the Providence Journal, Providence is considering a $300 tax on all students at private colleges in the city–that would be Brown, RISD, Johnson and Wales and Providence College</p>
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<p>I think that states that are losing money should tax private institutions (I know, this wouldn’t be popular among parents on CC)</p>
<p>Knee-jerk reaction is that that’s ridiculous. Am willing to hear arguments for the other side, however.</p>
<p>Is part of the discussion that with the big endowments they are not really a non-profit organization?</p>
<p>I never really understood the property tax exempt thing for private colleges or hospitals anyway. Doesn’t make much sense to me.</p>
<p>How would they do it? </p>
<p>Bill the students? The college could cite privacy laws and refuse to release student lists. Then there’s enforcement if a student did not pay.</p>
<p>Bill the college? May not be do-able in many places, due to various legal authority issues.</p>
<p>I totally disagree with billing the students, I think that states should tax the college itself, however this may end up affecting students as well</p>
<p>As a person who lives in a college town, I think it’s a bad idea. College students provide revenue to the city. They are a boon, not people who should be punished for living there. The college also is a source of jobs. I think that all such a tax would do would be to cause ill will between the university community and the city.</p>
<p>^^^ Exactly.</p>
<p>I also live in a college town, agree that it’s a bad idea. There’s often a fine line between public and private universities, which get money from all kinds of sources. And I know that in my college town, the excellent public transportation is one of many things that are heavily subsidized by the university. </p>
<p>As someone who has lived near Providence in the past, I think that there may be a bit of local politics going on here. Rhode Island is in the worst shape of the various New England states with regard to unemployment, which has been a long time coming, and is endemic to a lot of the problems that Rhode Island has as a state. I suspect the politicians in Providence who are proposing this are pointing the finger at the universities because it is much easier than looking at how the local and state fiscal priorities have led to the problems they are experiencing.</p>
<p>Thank you Northstar –</p>
<p>Everyone’s taxes support the public universities. Private university families also take on higher, optional, tuition burdens, (quite often through student loans) but don’t get a “tax deduction” for not utilizing the public options – . </p>
<p>It seems like kind of a misplaced “deep pockets” type of thinking.</p>
<p>Public and private educational institutions are generally exempt from the local Real Estate Tax which generally goes to pay for roads, fire, police, etc. Some schools have a gentlemen’s agreements with the city, to pay part “in Lieu of taxes” but not always. I can understand why cities might want to reach out and touch those who benefit from town services but do not pay taxes. Add the spin of townie vs. student conflicts and desire to tax might escalate. </p>
<p>And Rhode Island truely is in really bad shape; much worse then the rest of New England.</p>
<p>I forgot to post the link to the article: </p>
<p><a href=“The Providence Journal: Local News, Politics & Sports in Providence, RI”>The Providence Journal: Local News, Politics & Sports in Providence, RI;
<p>In fact, Providence non-profits do pay to the city:
</p>
<p>To me this just looks like a creative way to blackmail some fairly wealthy institutions.</p>
<p>I guess 501(c)(3) exemption from federal tax, does not necessarily have to be respected by state and local authorities (i.e. no exemption). I am not sure how the tax on non residents who do not work in the state, but merely reside there temporarily and purchase services will be legal, but go fight city hall. Perhaps they should erect a turnstile on the entrances to the colleges. Those who have traveled to NYC by the bridges and tunnels know that you pay to get into NY, but no charge to go back to Jersey!</p>
<p>Providence Mayor Wants to Tax College Students</p>
<p>“PROVIDENCE, R.I. The mayor of Providence wants to slap a $150-per-semester tax on the 25,000 full-time students at Brown University and three other private colleges in the city, saying they use resources and should help ease the burden on struggling taxpayers.
Mayor David Cicilline said the fee would raise between $6 million and $8 million a year for the city, which is facing a $17 million deficit.
If enacted, it would apparently be the first time a U.S. city has directly taxed students just for being enrolled.
The proposal is still in its early stages. But it has riled some students, who say it would unfairly saddle them with the city’s financial woes and overlook their volunteer work and other contributions, including money spent in restaurants, bars and stores.”</p>
<p>[Providence</a> mayor wants to tax college students - Yahoo! News](<a href=“http://news.yahoo.com/s/ap/20090513/ap_on_re_us/us_taxing_college_students_6]Providence”>http://news.yahoo.com/s/ap/20090513/ap_on_re_us/us_taxing_college_students_6)</p>
<p>Talk about a crazy idea.</p>
<p>[Providence</a> mayor wants to tax college students](<a href=“http://news.yahoo.com/s/ap/20090513/ap_on_re_us/us_taxing_college_students]Providence”>http://news.yahoo.com/s/ap/20090513/ap_on_re_us/us_taxing_college_students)</p>
<p>Can’t wait to listen to WPRO to hear what Buddy Cianci has to say about this!</p>
<p>Boston apparently has a much higher proportion of property held by tax-exempt institutions than most cities. Yet they also derive a lot of benefit from those institutions. Sounds like someone needs to do a rigorous study of the total financial situation before acting precipitately.</p>
<p>Research universities are a job engine for growth. I wish that we had one in our area as we are losing jobs and companies to other places with a better access to skilled labor. Rhode Island has been a basket case for political corruption. Massachusetts has too and it’s interesting to see an absolute frenzy of politicians trying to get themselves, friends, relatives and supporters on the public payroll with fat pensions even while revenue is collapsing. It’s hard for politicians to raise new taxes when they keep getting caught trying to raid the cookie jar.</p>
<p>I believe that colleges/universities in Providence already pay a “user fee” in lieu of property taxes. The rationale was the same as this: to cover the costs of police, EMT’s, etc.</p>
<p>Sounds like charging twice for the same service.</p>
<p>BTW, the_mom: I think Buddy was the mayor when the user fees went into effect.</p>