Nonprofit Newswire | R.I. Nonprofits Taxed

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March 28, 2010: Cape Cod Times | Just about every day, there is a new legislative effort to tap the nonprofit sector for revenues to fill state, county, and municipal budget holes. In Rhode Island, the General Assembly appears to be nearing in on a plan to remove nonprofits’ exemption from paying the state’s 7 percent sales tax. Like many proposed fee-generating activities, this would affect big nonprofits like hospitals and universities and little groups like community development corporations, homeless shelter providers, and parent-teacher associations. According to the press, Rhode Island’s nonprofit sector “reacted with a combination of shock and disbelief.” Nonprofits outside of Rhode Island ought to be wary too. If Rhode Island does this, won’t other states compel nonprofits to pay sales taxes too?—Rick Cohen