Mayor Ed Gainey continues to review tax-exempt properties in Pittsburgh
PITTSBURGH (KDKA) — Pittsburgh Mayor Ed Gainey and his team continue their review of tax-exempt properties.
The city is filing more appeals that involve some of the biggest employers in the area. In all, more than 100 properties are on this latest round from the city.
This latest appeal of tax-exempt properties involves parcels owned by big names like UPMC, Allegheny Health Network, the University of Pittsburgh, Carnegie Mellon University and Duquesne University. The city feels they don't meet the definition of purely public charities.
"Makes sure that we are treating every property owner the same," city solicitor Krysia Kubiak said.
According to the city, these properties would generate more than $6 million in revenue. It balloons up to more than $14 million when you include schools, parks and library taxes.
"We are here today to make sure our city has the resources it needs to pave our roads, pick up the snow, open our pools and give our residents the services they truly deserve," Gainey said.
So far, the city has gone through about 62% of the 940 tax-exempt properties in the city.
Last year, the city challenged 27 properties. It won 12 of the appeals, lost 12 — which it is appealing again — and three were withdrawn. In all, it brought back about $100,000 to the tax books. An outside firm was paid about $400,000 to help with this process.
The mayor's office said these challenges are not to fill any city budget holes.
"But rather to ensure for the long-term success of the city of Pittsburgh and the long-term thriving of its residents that our tax system is based on an accurate and fair understanding of who should be paying what," Deputy Mayor Jake Pawlak said.
Both AHN and UPMC said they give millions in charitable works and efforts around the city every year. Both question some of the properties the city is challenging. UPMC said some of the listed addresses are its hospitals, which operate as purely public charities. For AHN, one of the properties listed includes its cancer center.
"I am confident that the city has an extremely strong case to make in court," Kubiak said.
UPMC, AHN, and the mayor's office say they are in talks of ways to address the city's concerns and challenges. They want to work toward a solution that benefits everyone.
Over the next year, the city plans to review the remaining exempt properties and see if they truly meet the guidelines of purely public charities.
