With Cambridge property taxes up sharply this year, city councillors unanimously called on Harvard and MIT to increase their voluntary annual payments to the city yesterday, a move that plays on local resentment toward tax-free universities.
A second resolution, seeking to limit property tax exemptions for local nonprofits, also passed.
“It’s important we recognize the simple fact that for over a decade, Harvard and MIT have not adjusted their annual tax payment,” said Councillor Anthony D. Galluccio, co-sponsor of the resolution.
Cantabrigians have cried afoul in recent weeks after a property reassessment left some residents facing higher property tax rates, in some instances nearly double those of last year. Councillors said the controversy has highlighted the inequity between tax burdens for residents and their wealthy scholastic neighbors.
“We’ve been struggling for many years for Harvard University to pay their fair share,” said Councillor Marjorie C. Decker.
Though Harvard is Cambridge’s largest landowner, its non-profit status exempts the University from paying most property taxes. Under a payment-in-lieu-of-taxes (PILOT) agreement negotiated in 1990, Harvard is required to pay the city $1.7 million annually, in addition to $4.3 million in property taxes on non-tax-exempt land owned by the University.
“We’re very interested to hear how the conversation goes tonight,” said Harvard’s Senior Director of Community Relations Mary H. Power in an interview earlier yesterday. “We want to listen to the dialogue before responding.” The University did not send a representative to last night’s meeting. Harvard and city officials have been in talks about a new PILOT agreement for over a year.
Trying to eke out more funds from local universities is a political pastime in Cambridge, where similar proposals crop up nearly every election cycle.
“This is not the first time we’ve seen an order like this,” said Robert Winters, editor of the Cambridge Civic Journal. “Anytime there’s a dispute with Harvard or a property tax issue like we have right now, there’s immediately a knee-jerk reaction to put pressure on the universities to cough up taxes.”
Councillor David P. Maher admitted the council’s request that Harvard remit retroactive payments on the past decade’s PILOT fees was not realistic.
“I honestly don’t think that’s going to go anywhere,” he said.
But Councillor Kenneth E. Reeves ’72 made clear he is looking for more concrete results. “I hope we can do more than have a discussion,” he said.
Winters said blaming Harvard for fiscal problems is a surefire way to calm the electorate.
“If you’re a local city candidate or councillor, it’s like shooting fish in a barrel,” Winters said. “You cannot lose by shooting at Harvard.”
But supporters of the resolution were quick to quell suggestions that the bill played on local anti-Harvard sentiment.
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