PROVIDENCE, R.I. – The mayor of Providence wants to slap a $150-per-semester tax on the 25,000 full-time students at Brown University and three other private colleges in the city, saying they use resources and should help ease the burden on struggling taxpayers. Mayor David Cicilline says the fee would raise between $6 million and $8 million a year for the city, which is facing a $17 million deficit.
If enacted, it would apparently be the first time a U.S. city has directly taxed students just for being enrolled.
The proposal is still in its early stages. But it has riled some students, who say it would unfairly saddle them with the city’s financial woes and overlook their volunteer work and other contributions, including money spent in restaurants, bars and stores.
“We want to support the city as best we can, but financially is not really what we can afford to give,” says Heather Lee, president of the Brown Graduate Student Council. “We’re more able to provide labor, we’re more able to apply the things that we’re learning in the classroom, than we are to write a $300 check.”
Cities often look for revenue from universities to compensate for their tax-exempt status, and many schools already make voluntary payments to local governments. Providence’s four private schools – Brown, Providence College, Johnson & Wales University and the Rhode Island School of Design – agreed in 2003 to pay the city nearly $50 million over 20 years.
The idea of a student head tax has been floated before in other cities, generally to start discussions about collecting money from universities in lieu of taxes.
But Tony Pals, spokesman for the National Association of Independent Colleges and Universities, says he knows of no city that charges students a direct fee.
“The bottom line is, a tax like this has never gone into effect,” Pals says “The timing is also unfortunate, given the significant amount of budget-cutting that institutions have had to go through because of the recession.”
The four schools generate more than $1 billion a year in economic activity, said Daniel Egan, president of the Association of Independent Colleges and Universities of Rhode Island. They employ nearly 9,000 people in a city of roughly 172,000.
“We think the indirect and direct benefit of students within the community would outweigh any costs,” Egan says.
Cicilline’s office says there is no study showing how much students cost Providence for the use of police and fire protection and other services. The city points out that the private schools’ property, valued at more than $1.7 billion, is tax-exempt.
Many college students are already involved in tutoring, arts education and mentoring for public school students. Providence College, for instance, offers student volunteers to staff after-school programs, and Brown is raising money for a $10 million endowment to help the city school system.
Even so, Cicilline says everyone should be expected to help the city through this economic crisis. He says he wants students to have a vested interest in their city instead of seeing themselves as visitors just passing through.
“It’s really about a shared commitment to the well-being of your community that you’re a part of,” the mayor says “Everyone should be doing their part and coming to the table.”
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