State Senator Henri Martin (R-31) called a proposal by municipalities to tax nonprofits a dangerous proposition that would have devastating effects on charitable organizations and the clients they serve, according to a press release issued by his office.
“I understand that municipalities are feeling squeezed by the administration’s budget proposals and they don’t want to raise property taxes,” Martin said, according to the press release, “but subjecting nonprofits to the sales tax is just cutting off your nose to spite your face.”
Martin said, according to the press release, the very nature of nonprofits is to operate on a tight budget to ensure the most resources go toward clients’ needs. Forcing nonprofits to pay sales taxes for the good and services they acquire would cut into their already dwindling budgets, said Martin in the news release.
“Talk to any nonprofit and they will tell you they are struggling from declining donations and shrinking grants,” he said in the press release. “Adding a new expense in the form of sales taxes could potentially crush these organizations. Who, then, would provide the important services their clients rely on receiving? What will happen to those people and groups depending on these services?”
In the news release from his office, Martin said if nonprofits close because of the sales tax, municipalities won’t receive that anticipated funding. Also, the release said, the reduction or elimination of services provided by nonprofits could create a new financial burden for municipalities.
“We have nothing to gain, and potentially everything to lose by subjecting nonprofits to the sales tax,” he said in the news release.
Sen. Martin represents the communities of Bristol, Harwinton, Plainville, Plymouth, and Thomaston.