In times of economic prosperity, Pitt’s tax exemptions are hardly considered. But today, as… In times of economic prosperity, Pitt’s tax exemptions are hardly considered. But today, as the city’s deficit stumbles across more difficult times, questions arise concerning how much the universities in the area are contributing.

In 2001, Pitt paid more than $9 million in taxes to the City of Pittsburgh, according to G. Reynolds Clark, the vice chancellor of community and governmental relations.

Clark explained that Pitt, as a not-for-profit institution, is a significant contributor to the quality of life in the area.

Pitt brings people into the area, which generates money for the city. In 2001, Pitt paid more than a $260,000 to the city in amusement tax. This is the tax made on ticket sales to events such as those held at the Petersen Events Center.

Taxes on Pitt’s on-campus parking is another large financial factor. In 2001, Pitt paid the city about $1 million.

As the city of Pittsburgh finds itself with a $60 million budget deficit, many are viewing not-for-profit institutions – such as Pitt – as a contributing factor to the city’s financial woes because they do not have to pay all taxes on their land.

According to the Mayor’s Office, more than 30 percent of land in the city is nontaxable. If these properties were taxed, the amount generated is estimated at $70 million, which more than covers the deficit.

Despite the fact that much of Pitt’s property is nontaxable, they are required to pay real estate tax on a portion of their property. According to Paul Supowitz, the vice chancellor for commonwealth and city/county relations, Pitt is required to pay taxes on any properties “that aren’t related to our mission of education, teaching and public service.”

In Sennott Square, for example, Pitt does not pay real estate tax on the upper floors of the building but does for the first floor, where its retail space is located.

“Universities across the country have tax exemptions, if we lose [our tax exemptions] we aren’t able to compete,” Supowitz said.

Clark further emphasized Supowitz’s point and said, “not-for-profit institutions are a great asset and should not be seen as a liability.”

In April 2001, Pitt’s Center for Minority Health took part in a one-month campaign in an effort to ensure that 11,000 public school students received their state-mandated measles immunizations. The result of this campaign prevented the mandatory expulsion of thousands of non-immunized students from the Pittsburgh Public School District.

“There is a sense that the universities are not providing revenue streams to the community, which is not true,” Clark said.

He went on to explain that Pitt gives back to the community without a profit motive. By bringing people into the area, Pitt – already the largest employer in Allegheny County – not only establishes jobs and increases spending in the community, but also creates services and supplies that might not otherwise exist.