Mayor Ed Gainey says it is time major non-profits pay their fair share
PITTSBURGH (KDKA) -- Homeowners in the neighborhoods of Panther Hollow and Four Mile Run live in the shadow of giant nonprofits: UPMC, the University of Pittsburgh and Carnegie Mellon University.
But while the residents pay thousands of dollars a year in property taxes, those institutions are exempt.
"Folks paying a lot of property taxes find that frustrating that UPMC, one of the largest property owners in the city, is not paying any taxes," said Barb Warwick of Four Mile Run
It's been debated and argued over for years. Should the hospitals and universities -- our region's major employers, property owners and revenue generators -- make payments to their host municipalities in lieu of taxes?
With pressing needs like decaying infrastructure and equipment-strapped departments, Mayor Ed Gainey told KDKA's Andy Sheehan that he is now meeting with the major nonprofits behind the scenes to craft a solution where former administrations have fallen short.
"Everybody needs to pay their fair share. This is not a slogan, this is not a cliche. This is what people believe in. I believe in it. That why we're working with them to get to a solution where everybody pays their fair share," the mayor said.
Because of their mission in education and health care, these institutions are designated as nonprofits for the public good and exempted from paying taxes under the federal tax code. But in the city, in particular, Gainey said they continue to expand, taking more and more property off the tax rolls and shifting the burden of paying for services to residents and businesses.
KDKA's Andy Sheehan reached out to UPMC, AHN, Pitt and CMU, but so far only Pitt and UPMC have responded.
Approximately 50 percent of the land UPMC owns in Allegheny County is tax-exempt and the sites of its hospital campuses. The other 50 percent is taxable.
"UPMC looks forward to continue working collaboratively with Mayor Gainey on the many issues facing Pittsburgh."
Sheehan: They're not legally required to give you a dime.
Gainey: You're right. Legally, they're not required to give us a dime. But for the overall growth of this region, then it is the responsibility of corporate partners -- our non-profit partners -- to play a part in growing this region.