By Lea Kahn, Staff Writer
Despite Lawrence Township officials’ request for voluntary contributions from nonprofit organizations and educational institutions, only two have stepped forward SERV Behavioral Health System Inc. and the Islamic Circle of Mercer County.
SERV, which operates a group home on Darrah Lane, sent a check for $2,101.97 and the Islamic Circle of Mercer County, which meets on Lawrence Station Road, contributed $1,250, Municipal Manager Richard Krawczun said.
Township Council mailed letters to more than 50 nonprofit organizations and educational institutions earlier this year, seeking a voluntary contribution equivalent to 25 percent of their potential municipal property tax bill that would have been due if they were not tax-exempt. The deadline to make a donation was Oct. 31 so it could be factored into the proposed 2013 municipal budget.
Under state law, nonprofit groups and schools or colleges do not have to pay property taxes.
Mr. Krawczun suggested seeking voluntary contributions from those organizations, whose properties are tax-exempt, at Township Council’s June 6 meeting. The issue of tax-exempt organizations and the lack of property tax payments from them was mentioned by three township residents who volunteered to review the 2012 municipal budget.
Mayor Jim Kownacki pointed out previously that Lawrence Township is responsible for providing for public safety and public health, as well as maintaining municipal roads, buildings and parks. Residents, businesses and visitors benefit from those services, “as do the tax-exempt property owners within our community,” he said.
The 90 parcels owned by the tax-exempt organizations are assessed at $287.6 million for property tax purposes. The properties would generate $2.5 million in municipal property taxes, but Township Council is seeking a 25-percent voluntary contribution that amounts to $625,000.
Mr. Krawczun said that over the past few years, Lawrence Township has experienced significant cuts in state aid, a decline in miscellaneous revenue and a shrinking budget surplus fund that it would have used to offset property tax rate increases.
Since 2010, the township has lost $160.2 million in ratables because of successful property tax appeals. The township also is responsible for refunding all of the successful tax appeals including the full amount of school and county taxes out of its own funds, Mr. Krawczun said.
As a result, Township Council has tightened its belt and residents have taken on the burden of higher property taxes, he said. Since 2008, the number of municipal employees has been cut from 212 to 182 through a combination of retirements, attrition and layoffs. The township also has raised fees and cut down on capital spending.
That’s why tax-exempt organizations have been asked to consider providing a voluntary contribution to support municipal services, Mr. Krawczun said, noting that “it is important that we have nonprofit organizations in town.”
”In many ways, they contribute to the Lawrence Township community and beyond, but at the same time, we need to be fair. Reaching that balance of equity between who is paying taxes and who is not paying taxes is not a simple task,” Mr. Krawczun said.

