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Granting exemptions from the property tax has been criticized because it eliminates a source of municipal revenue. Exempt properties appear to be concentrated in urban areas, so this effect is especially problematic for cities because of the existence of urban fiscal stress. Recent writers have indicated that exempt institutions may provide valuable services to their communities, but the cost of municipal services to their properties represents a significant fiscal impact on local governments. This paper investigates the fiscal impact of a single exempt institution, Brown University, on the City of Providence, R.I. Fiscal impact analyses were used to measure the. cost of municipal services provided to the university. The results of this investigation are that the costs of services to exempt educational institutions are minimal, and are not significant in view of the total municipal budget.

AN INVESTIGATION OF THE COSTS OF MUNICIPAL SERVICES TO TAX-EXEMPT INSTITUTIONS USING BROWN UNIVERSITY AS A CASE STUDY