Another public hearing on the UPMC/Highmark impasse prompts renewed call for SB 1281

PITTSBURGH, November 30, 2011 – – After attending today’s Senate Banking and Insurance Committee hearing on the dispute between the University of Pittsburgh Medical Center (UPMC) and Highmark, Sen. Wayne D. Fontana (D-Pittsburgh) again stressed the need for legislative action to address non-profit organizations that are clearly driven by profit.

“While many of our non-profit organizations provide services that save the state a considerable amount of money and are key to thriving communities, others continue to treat consumers as pawns in a game where the main objective seems to be maximizing profits,” Fontana said. “Organizations which do this are non-profit in name only and act without regard for the public good. If we give them benefits for helping the public, they need to do the right thing and make that be the primary mission which drives them.”

Fontana’s legislation, Senate Bill 1281, would require all non-profits to pay real estate taxes on the assessed value of the land owned by their organization. The first $200,000 of total land value would be exempt under the bill; the exemption would not be on a per-parcel basis, but would instead apply to all properties owned by the organization.

“There are non-profit organizations out there that are sitting on high-valued, tax-free real estate. If they sold this land, these non-profits would make a handsome profit. Asking them to pay their fair share in taxes is a sensible trade-off and could help our struggling communities.” Fontana added. “The current recession has adversely affected everyone – non-profits and local governments included. It is only fair that non-profits and communities share the burden of putting our economy back on track. This legislation would start to correct the imbalance which exists currently and make non-profits more accountable to the people and communities they are intended to benefit.”

Fontana’s bill is currently in the Senate Finance Committee.

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