Nonprofit-owned BMWs, Mercedes-Benz among tax-exempt cars
PROVIDENCE, R.I. (AP) – Providence has forgiven millions in taxes in recent years for vehicles owned by private colleges, other nonprofits and even some for-profit businesses.
WPRI-TV found that the vehicles include luxury models like BMWs, a Mercedes-Benz and a Cadillac.
The station reports that for the fiscal year that began July 1, the city projects it will lose out on $476,000 in taxes for 996 vehicles registered to various nonprofit organizations, including colleges, hospitals and churches.
Another 3,500 vehicles owned by the city or other state agencies are also exempt.
Some city leaders question whether the use of high-end cars violates the spirit of the tax-exempt status.
Each year the city forgoes about $3.8 million in tax revenue from all cars which are deemed exempt from paying taxes.