"I would hope that in the spirit of good community cooperation they would make some kind of payment because they do use our town services," Patricia Kennedy said.
PALMER – Letters have been sent to 25 tax-exempt organizations asking them to make an annual payment to the town in lieu of taxes as a way to generate revenue.
The idea to solicit funds from these organizations, which include the American Legion, Palmer Ambulance, Amvets, churches, Palmer Housing Authority, Camp Ramah, Three Rivers Chamber of Commerce and Wing Memorial Hospital, came from Acting Town Manager Patricia A. Kennedy.
Kennedy was assisted by the assessor's office in crafting the letters.
“We are looking for sources of revenue. We really should extend our tax base. They have no obligation to pay that, but I would hope that in the spirit of good community cooperation they would make some kind of payment because they do use our town services, such as the ambulance, or police,” Kennedy said last week.
The letters were sent May 17; as of Friday, there had been no responses. Any revenue the town receives will go into the general fund, Kennedy said.
Kennedy said Sturbridge also asks its tax-exempt real estate owners to make payments in lieu of taxes to the town. The idea is to create a broader tax base, she said.
“I thought we should ask. I don't see where there is anything to lose by asking,” Kennedy said.
At-large Councilor Paul E. Burns echoed Kennedy's comments, “I think it’a a good idea; it never hurts to ask.”
Amounts being requested range from $75.95 from the Three Rivers Chamber of Commerce and $6,610.69 from St. Paul's Church to $2,078.43 from Union Evangelical Church, $5,180.64 from Palmer Housing Authority and $115,572.90 from Wing Memorial Hospital, which is the largest being requested.
The letters state “the tax burden being placed on taxable real estate has grown substantially and the town must absorb the costs associated with the loss of revenue due to the tax-exempt status of a portion of its real estate.”
The amounts are calculated using a formula based on the assessed value of the property and the cost of basic town services.