Trumbull State Rep Devlin: Fund PILOT, Don't Tax Non-Profit Colleges and Hospitals

Trumbull State Rep. Laura devlin said that taxing nonprofit hospitals and colleges isn’t the answer to the state’s budget woes.

The bill would tax properties that were purchased or will be purcahsed by nonprofit hospitals and colleges and would be retroactive.

More from Devlin’s office:

Colleges, universities, and hospitals receive PILOT (Payment In Lieu Of Taxes) funding from the state. This bill would eliminate the property tax exemptions for certain property owned by private, nonprofit colleges and hospitals.

Rep. Devlin’s whose district includes Fairfield University and Sacred Heart University said, “The state’s answer to every question should not be to tax. We need to prioritize our current state spending. The worst part of this tax is that it isretroactive to 2009 for hospitals and goes back indefinitely for colleges. Connecticut tax policy which seems to change at a blink of an eye only solidifies our reputation as a bad place to do business. We need to stop. Eliminating PILOT funding would place a greater burden on both hospitals and colleges resulting in probable job losses that would adversely hurt the economic vitality for many communities.”

According to the non-partisan legislative Office of Fiscal Analysis, the two Fairfield universities would be forced to pay millions of dollars in taxes.

The bigger problem with PILOT funds according to Rep. Devlin is that under statutory reimbursement levels, the state should be sending 77 percent of the property taxes Fairfield would receive as reimbursement for any hospitals and colleges and other tax-exempt nonprofits but the state only sends 32 percent.

“The state should keep its promise to Fairfield and other towns and fully fund the PILOT program which would make the town whole,” said Rep. Devlin.

The bill was “Passed Temporarily” (PT’d) after many legislators voiced opposition to the punitive retroactivity of the tax. When a bill is PT’d it is removed from active floor debate, but can be brought back any time before the end of the legislative session.