The Cambridge Board of Assessors last night presented the City Council with a proposal that would increase Harvard's annual payments to the City in lieu of taxes from $90,000 to $400,000.

The proposal suggested that Harvard and MIT pay the average tax return on land in Cambridge--5.2 cents per square foot--with the payments increasing along with the City tax rate.

The proposal is part of a broader plan under which the City would request such payments from all tax-exempt property. Forty-five per cent of Cambridge property currently falls into tax-exempt categories.

"One of the (academic) institutions (Harvard and MIT) is amenable to our formula but the other is still reluctant to enter into the agreement." City Manager John Corcoran told the Council. After the meeting Corcoran indicated that Harvard was the reluctant institution.

Year to Year

From 1928 to 1968 Harvard paid annual sums in lieu of taxes under successive 20-year agreements with the City. Subsequent acquisitions of land and buildings like Peabody Terrace were covered by separate arrangements. Since 1968, the City and Harvard have negotiated on a year-to-year basis.

"We're under no legal obligation to make payments to the City," Robin Schmidt, assistant to the vice president for Government and Community Affairs, said yesterday. "It is a voluntary thing that Harvard does as a duty to the community."

Donald C. Molton, coordinator for Community Affairs and the University's representative in the tax negotiations, said yesterday. "We are discussing what services the City provides for Harvard and vice versa."

Two weeks ago the Council refused to approve Harvard's plan for payments in lieu of taxes on the recently purchased Hotel Continental.

In another action the Council voted to bill Harvard $25,000 for special police details during the SDS convention earlier this month. "I don't know if they requested the police or not," said Councillor Alfred E. Vellucci. "If we let Harvard get away without paying this bill, the $25,000 could just about wipe out any money the city gets under Harvard's plan for the Continental Hotel.