Boston revisits program for tax-exempt hospitals to make voluntary payments to city

The city of Boston created a task force responsible for reviewing and modernizing a program in which nonprofit institutions, including hospitals, make voluntary payments to the city, Mayor Kim Janey announced June 14. 

Under the current voluntary payment in lieu of taxes program, Boston seeks cash or community benefit contributions from academic, medical and cultural institutions that own real estate but are exempt from paying property taxes. 

Recent data found that many of the contributions from the tax-exempt institutions have not been cash, but rather community benefits like donated office space, scholarships or free admission to events, according to the Boston Globe.

The new task force's initial priority will be to examine the community benefits portion of the program, according to Ms. Janey.

"New voices and new frameworks create new opportunities to make our city stronger," Ms. Janey said. "Our response to the COVID-19 pandemic exemplifies the importance of City partnerships with community organizations and institutions to serve residents and ensure a recovery and renewal that includes all of our communities."

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