[Vision2020] Tax abuse rampant in nonprofits

Barbara Richardson Crouch edc at moscow.com
Fri Apr 8 12:53:28 PDT 2005


Mark,

Our overall tax rate is high compared to the rest of Idaho - see Jeff's 
table.  Mark, if you look at our largest employers - the top six of seven 
our governmental entities or not-for-profits.  Idaho as a whole has a 
higher percentage of non-taxed land than the rest of the United States
(Alaska excluded).  Consequently, we have unique challenges, but we also 
have unique opportunities for consolidation and collaboration.

For example, we could have a government center for City and County 
governments.  Freeing currently occupied tax-exempt buildings to be leased 
and placed on the tax roles.  the City of Pullman and the Pullman School 
District have worked together to build joint-use facilities - that is an 
option here.

Basically, a strong school system, good recreational opporuntities, strong 
neighborhoods and art programs improve lifestyle (quality of Life) but 
only to the point where the tax burden does not disenfranchise the 
taxpayer.

Barbara



> Barbara,
> Thanks for your response.  I have a couple more questions that maybe you 
(or
> others) can help with.
> Is Moscow's tax burden really heavier than "normal"?  It seems that we 
have
> a very significant quantity of tax exemption (UI; LCCH; USPO; IDL; City,
> County, Federal agencies; churches; and other non-profits) relative to 
our
> population.  What would your guess be at a % or ratio of actual received
> taxable vs. potential taxable (if everybody paid taxes) revenues?  Or
> another way is: what % more is needed to be paid by the smaller group to
> "make-up" for the whole not paying?
> 
> You are very right that there is a unique perception of what you pay for 
and
> what you get.  People seem to want more than they are willing to pay for.
> There seems to be a very high level of DIY / utilitarian characteristic
> (maybe because of our area's significant agrarian/frontier heritage.)  
How
> do people begin to understand the value of paying for better life-cycle
> costs and be willing to pay more as an investment for the future?  Are we
> short-timers that don't care about the future and are incomes so 
depressed
> that higher cost is not seen as investment, but rather extra expense?
> 
> Mark
> 
> Mark Seman, Architect
> Heather Seman, Landscape Architect
> 1404 East 'F' Street  Moscow, Idaho 83843
> v 208-883-3276 / f 208-883-0112
> 
> 
> 
> -----Original Message-----
> From: Barbara Richardson Crouch [mailto:edc at moscow.com]
> Sent: Thursday, April 07, 2005 1:26 PM
> To: FCS at moscow.com; rforce at moscow.com; vision2020 at moscow.com
> Subject: RE: [Vision2020] Tax abuse rampant in nonprofits
> 
> 
> Mark,
> 
> Many other communities in the US have universities or colleges that are
> tax exempt and do not seem to have the perceived tax burder or problem
> that Moscow has.  For example, Pocatello has ISU however, they also have
> diversified their economy so that they are not overly dependent on ISU 
for
> their economic base - and yes their tax rate is lower than ours.
> Basically, a governmental budget is like any other budget - if you spend
> more than you earn - there is a problem.  The people of Moscow may want
> more services than they are willing to pay for - or allow development 
for -
>  that will not be corrected by bringing in more revenues from taxing the
> University or other governmental units.
> 
> Barbara
> 
> > I don't know how it could be accomplished, but I'd love to see all tax
> > exemptions abolished and a proper distribution of the resulting tax
> dollars.
> > I have a sense that most tax exempt entities do not provide a 
comparable
> > community benefit to offset tax "losses".  Even if a governmental 
agency
> is
> > taxing itself (State, County, Federal, UI, USPO, etc.) - I'd prefer to
> have
> > them taxed and the revenues distributed in a revamped system.  I'm
> curious
> > as to whether this would prove to be beneficial for a greater good or
> just a
> > shift of burden from current paying entities at the expense of current
> > exempt entities.  Maybe Moscow is unique with its overly burdened tax
> payer,
> > but what would be the negatives that cancel the benefits of a more 
evenly
> > distributed tax burden?  Perhaps an economist or others can weigh in on
> this
> > and provide me with better insight?
> >
> > Mark
> >
> > Mark Seman, Architect
> > Heather Seman, Landscape Architect
> > 1404 East 'F' Street  Moscow, Idaho 83843
> > v 208-883-3276 / f 208-883-0112
> >
> >
> >
> > -----Original Message-----
> > From: vision2020-bounces at moscow.com
> > [mailto:vision2020-bounces at moscow.com]On Behalf Of Ron Force
> > Sent: Wednesday, April 06, 2005 3:09 PM
> > To: vision2020 at moscow.com
> > Subject: [Vision2020] Tax abuse rampant in nonprofits
> >
> >
> > Tax Abuse Rampant in Nonprofits, IRS Says
> >
> > By Albert B. Crenshaw
> > Washington Post Staff Writer
> > Tuesday, April 5, 2005; Page E01
> >
> > ....Everson raised particular concerns about nonprofit hospitals and 
how
> hard
> > it is to distinguish them from for-profit hospitals; political activity
> by
> > nonprofits; misuse of entities set up to allow religious leaders to 
hold
> > property and conduct business for the benefit of a religious
> organization;
> > and deals designed to allow members of a tribe to benefit from gambling
> > revenue without owing taxes...
> >
> > http://www.washingtonpost.com/wp-dyn/articles/A26388-2005Apr4.html
> >
> >
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> >
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> 
> 
> 
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