To the Editor:

I am writing to address an issue pursuant to the recent tax exemption granted to the Southern Rhode Island Chamber of Commerce by the South Kingstown Town Council. In my opinion, legislation which I sponsored, passed in 2003 by the General Assembly on behalf of the town provides for standards which the Town Council did not follow when making a decision to grant this tax exemption. Thus, section 44-3-55 of the Rhode Island General Laws entitled:  Tax exemptions in the town of South Kingstown qualifies the exemption “which is directly related to the actual conduct of the charitable purposes of a non-profit organization recognized as such by the state of Rhode Island.”

After reading several accounts of the council meeting and viewing the video tape, the evidence of the actual conduct of the charitable purposes of the Southern Rhode Island Chamber of Commerce were not articulated beyond statements made by supporting witnesses. Their testimony about their charitable work in the community was generalized. Balance sheets showing revenue amounts and to whom and what benefited from their charitable efforts were not offered. Their presentation was limited to something along the lines of “We’re good people and we do good things so give us a tax break.”

Chamber of Commerce organizations are not classified as not-profit charities. The IRS categorizes them as 501 c 6’s, not for profit business groups. The National Football League is a 501 c 6. Charities fit into the category of 501 c 3’s. Charities, by the way, are allowed to lobby but cannot sponsor a political action committee as done by the Southern RI Chamber. Contributions to a chamber are not tax deductible.

South Kingstown’s businesses have done an outstanding job in their efforts serving our community. Their support of causes to help those in need have made them a major contributor of our town’s quality of life. The Chamber has been a leader in these efforts but that doesn’t make it a charity. Given the current situation I would recommend the Town Council reconsider the vote on this resolution. Given the relative ease by which the Chamber was granted an exemption I would imagine there are several other non business organizations that will soon be coming forward looking for tax relief.

Sincerely,

John Patrick Shanley

29 Briarwood Drive

Wakefield, RI

Note: John Patrick Shanley is a former South Kingstown representative.