City looking to raise local taxes hits up charities to pony up…

Lowell, MA, has found a way to boost its local tax revenue. The city's plan is to force nonprofits to make "payment in lieu of taxes" which is "equal to 25 percent of the equivalent residential property tax bill." Lowell's story can be found here.

Groups that have state property tax exemptions are generally thought to provide public benefits for the public good. Arguably, many nonprofits could be severely hurt if property taxes were imposed. For some municipalities like Lowell, however, find this untapped revenue stream just too good to pass up in times of low tax revenue for local jurisdictions.