Thursday, March 09, 2006

Taxing the Non-Profits

Twelve non-profit organizations in Waterbury neglected to fill out paperwork with the city. Apparently this needs to be done every four years in order to maintain their tax-exempt status with the city. It seems very strange that so many of them didn't do it. The city sent out two letters reminding them about it, but did not follow up with phone calls. Considering the importance of the paperwork and the fact that mail does sometimes get lost, I think the city really should have followed up with phone calls to the twelve organizations that didn't file.

The city is citing state law prohibiting them from waiving the taxes that will be owed. Mayor Jarjura says he hopes the state legislature agrees to return the non-profit groups to their tax exempt status. This is the same man who refused to allow the city tax collector to collect tax from his personal friend Lestorti. It's okay to make a special exemption for your friends, but not for non-profit groups who would normally not pay taxes?

Sheila O'Malley, Jarjura's Chief of Staff, was quoted in today's paper as saying that "the punishment does not fit the crime." I'm sure she was just using a cliche carelessly, but still. Crime? Neglecting to file paperwork is a crime? Talk about blowing things out of proportion! (to use another cliche)

So now the state legislature will decide the issue. It would be nice if something positive came out of this, considering the amount of time being spent on it. Non-profit groups do a lot of good things for their communities on shoe-string budgets. Having to face the nightmare of going under because they didn't file a form seems very unjust.

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