As the city struggles with the budget, the councilman considers the property taxes of the UVA –

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CHARLOTTESVILLE, Va. (CBS19 NEWS) — As the city of Charlottesville grapples with serious budget issues, a councilman says getting the University of Virginia to pay its fair share would go a long way.

Councilor Michael Payne suggested the AVU enter a “payment in lieu of tax program” or PILOT for short.

As a non-profit, UVA does not pay property taxes, but now people are wondering why this could happen if it did.

“If UVA paid the same property taxes as everyone else, the city would receive just over $15 million a year from the university,” Payne said.

Payne thinks the money would go a long way to solving several big problems.

“It would more than pay for our entire affordable housing strategy,” he said.

This is just one of the many ways the city would benefit greatly from a small portion of the AVU budget.

“It would be a significant amount of money for the city,” Payne said. “That would be just 0.8% of UVA’s $1.9 billion budget.”

Besides the budget, this PILOT program agreement would also strengthen the relationship between the school and the city.

Payne agrees that UVA has a huge economic impact on the region, but many low-income residents of the city don’t see it.

“It actually contributes to inequality in our community,” he explained.

For that to happen, both sides would have to come to the negotiating table.

“The city and the university need to come together around a table to have a good faith conversation about how to work out specific details and how we can get creative to achieve the goal,” he said. declared.

Payne cites examples like New Haven, Connecticut, where Yale University has a PILOT program.

Asked about it on Friday, UVA President Jim Ryan said it was something to look into.

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