MIT Gives Cambridge $833,000 In Lieu of Taxes
Continuing a practice it began in 1928, MIT made a substantial voluntary payment in lieu of taxes to the City of Cambridge last month.
A check for $833,000 was presented to Mayor Kenneth E. Reeves and Deputy City Manager Richard C. Rossi by Philip A. Trussell, director of real estate and associate treasurer at MIT; Ronald P. Suduiko, assistant to the president; and Sarah J. Gallop, assistant for government relations.
A 2-x-6-foot replica of the check was presented to the city officials, along with 30 balloons which were distributed throughout city hall. The check was later displayed at the city council meeting that evening when the payment of $833,000 was announced by Mayor Reeves.
The voluntary payment is in lieu of taxes on MIT-owned property that is legally tax-exempt because it is used for educational purposes.
In addition to the in-lieu payment, MIT has paid the Cambridge collector of taxes approximately $4,674,322 in property taxes levied in the current tax year on other MIT real estate in Cambridge. With that payment, MIT is the third largest taxpayer in the city.
MIT has also paid Cambridge more than $652,000 this year for various licenses and fees required for operations at the Institute.
Of this amount, $465,000 represents the fee related to obtaining a building permit for MIT's new Biology Building located on Ames Street. MIT's Department of Biology has made substantial contributions in research on cancer, Alzheimer's disease, AIDS, and in other critical health areas. Department faculty are also responsible for founding several Cambridge-based biotechnology firms including Alkermes, Biogen, Immunogen and Repligen.
MIT's fiscal year 1992 payment for water and sewer charges to the city amounts to $2,313,000.
Altogether, MIT will pay Cambridge $8,472,322 this year.
A version of this article appeared in the September 2, 1992 issue of MIT Tech Talk (Volume 37, Number 4).