Not for profit organizations in Pittsburgh may expect a radical or somewhat unwanted development by shouldering the tax burden of the steel city. Some media reports state that city’s democrat Mr. Jim Ferlo is nowadays busy in compiling a bill that will impose tax on organizations with employees more than or equal to 250.
Government is taking these steps with increased frequency to deal with the adverse effects of recession. The signing of the proposed letter is in line with the overall efforts, by United States federal government, to impose payments on not for profit organizations. On contrary the bill would also decrease some amount of tax on businesses in the city.
Nonprofit colleges and educational institutes are also being targeted by city governments to fill up their treasuries. The states that are more active in this matter include New Jersey, Rhode Island, North Carolina, Vermont, Michigan and Massachusetts.
Nonprofit organizations in nearly 28 states have been targeted by government to pay considerable amounts in lieu of taxes since 2000. Conversely the status of the firms exempts them from more of the taxes.
Organizations that hold nearly 250 or more workers are declared to be tax exempt account for 70 % of such employment in the city. The biggest employers of Pittsburgh in 2011 were all declared to be exempted from tax. Among them were PNC Financial Services (NYSE:PNC) and renowned retailer Wal-Mart Stores, Inc. (NYSE:WMT).
University of Pittsburg Medical Center, a renowned nonprofit institute, holds nearly 13 % of all local jobs and employs over 38000 employees. Reports show that Ferlo did not talk to the leaders of not for profit organizations in Pittsburgh while the formulation of proposal was executed.
PNC Financial Services (NYSE:PNC) shares fell -0.45% to $61.84 in last trading session, Wal-Mart Stores, Inc. (NYSE:WMT) stock fell -0.06% to $69.45 in pre-market.