Mayor Gainey issues executive order to review all tax-exempt property owned by charities
PITTSBURGH (KDKA) - Pittsburgh city leaders will review all tax-exempt properties to determine if they pass a test or need to pay up.
Mayor Ed Gainey signed an executive order Tuesday, allowing the finance and law departments to start looking into charitable organizations.
City leaders said the biggest concern is one-third of the City of Pittsburgh property is exempt, and the city loses millions of dollars. Now non-profit organizations must pass the Pennsylvania Purely Public Charity test.
Mayor Ed Gainey said, among the requirements, the organization must advance a charitable purpose, operate entirely free from a private profit motive and donate a substantial part of its services.
Mayor Gainey said this does not include religious institutions. However, this could impact certain health systems, universities and other organizations.
"If you fail to meet our standards, then we will make sure you are paying your fair share to our city. Right now, we estimate that charitable organizations in our city would owe $36 million in property tax if they fail to meet the Pa. Purely Public Charity test," Gainey said.
"The City of Pittsburgh is facing a revenue shortfall, especially once the ARPA funds run out in a couple of years. At that point, we need to make sure we have enough revenue to pay for our police officers, our bridges and our snow plows," chief legal officer and City Solicitor Krysia Kubiak said.
Kubiak said this will be a long process and no one should expect a bill any time soon. She said they'll start reviewing the largest properties to figure out who is a purely public charity.
City leaders are also asking for the public's help. If you know an organization that doesn't meet the requirements, email report@pittsburghpa.gov.
Allegheny Health Network released a statement, saying:
"Highmark Health and AHN officials meet regularly with community leaders to discuss public health issues and opportunities to improve the health and wellbeing of the people and communities we collectively serve. We are committed to meeting the expectations and requirements of purely public charities, and we look forward to a continued partnership and with the city and county to help make our community healthier and stronger. We don't have any further comment at this time. Thanks for the opportunity to respond."
UPMC released a statement, saying:
"The vibrancy of Pittsburgh – as well as all the communities we serve throughout the Commonwealth – is of utmost importance to UPMC. UPMC has long been committed to being a great neighbor, a trusted resource for health care, and a creator of well-paying jobs. We are proud of our leadership role as a key economic engine for the City, with more than 18,000 employees choosing to work and live within the City itself. The City of Pittsburgh and Mayor Ed Gainey, with whom we have met, are aware of UPMC's ongoing support and can count on our full participation in programs that are fair and equitable and include the region's other major nonprofits."
Pitt released a statement, saying:
"The University of Pittsburgh is a significant and steadfast economic engine for the city, as well as a dedicated community leader, anchor and collaborator. We value our longstanding partnerships throughout the city and look forward to continuing to work with the mayor and local officials on building a brighter future for Pittsburgh."
