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Italy follows Providence’s lead, squeezes Vatican for revenue

WPRI.COM

Ted Nesi

Updated: Feb 21, 2012 9:51 AM

If you thought Providence’s fight with Brown University was tough, look across the pond. Italy is trying to squeeze more revenue out the most powerful tax-exempt of all – the Vatican:

The government of Prime Minister Mario Monti … [said] it would change Italian law to ensure that the church pays property tax on the parts of its buildings used for commercial ends.

The church owns vast amounts of property in Italy, and the move is aimed at making sure that convents that offer bed-and-breakfast services or church buildings that rent space to shops pay their share of taxes.

The change — once it is formally drafted and approved by Parliament — could result in revenues of $650 million to $2.6 billion annually, according to municipal government associations. It could also set an example for other European countries that are struggling with debt — notably Greece and Spain — and where there is growing popular resentment over tax breaks for the church. …

Many church buildings fall into a gray area, taking advantage of a tax exemption for religious organizations’ buildings even if they are largely used for commercial purposes.

Sound familiar?

In Providence, $602.5 million worth of property owned by religious institutions is exempt from taxation, according to city documents. That’s equal to a little less than 9% of the city’s $6.7 billion in total exemptions.

(photo: Enrique Cornejo/Wikipedia)

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