Massachusetts hospitals are speaking out against two proposed bills that would require some nonprofits to pay more in property tax, according to the Worcester Business Journal.
The first bill, proposed by Rep. David Nangle (D-Mass.), would allow towns to charge a 50 percent tax liability to nonprofit organizations that pay their five top earning employees more than $2.5 million cumulatively. The second bill, proposed by Rep. Stephen Kulik (D-Mass.), would allow municipalities to collect 25 percent of the amount that would be paid in property tax from property tax-exempt organizations, according to the report.
Both bills are strongly opposed by nonprofits, including Massachusetts hospitals, who argue their organizations support the community by providing essential services rather than paying property tax, according to the report.
"It's clear non-profit organizations are the lifeblood of the commonwealth and the cornerstone of every community," Michael Sroczynski, vice president of government advocacy of the Massachusetts Health & Hospital Association, told the Worcester Business Journal. "The fact that these organizations receive tax exemption at the state and federal level is in recognition of the public good they offer to society and the help they provide to our most vulnerable residents."