Dive Brief:
- As Connecticut considers reversing a centuries-old property tax exemption for higher education institutions, school leaders are fighting to prove the positives of such arrangements.
- In a piece published by University Business, University of New Haven President Steven Kaplan argues that many schools make payments to states and municipalities in lieu of taxes through targeted programs, and Yale alone has paid New Haven more than $90 million since 1990.
- Kaplan also points out that colleges and universities generally increase property values near their borders, generating revenue that helps offset exemptions.
Dive Insight:
Connecticut’s bill passed the state assembly this summer as part of the budget, giving municipalities the power to levy property taxes on off-campus student housing that isn’t considered a dormitory. A handful of institutions are exempted from the legislation, including Yale, which was given a pass on property taxes when the state constitution was written. The push to get schools to pay what some consider their fair share is happening in states and municipalities nationwide, giving school administrators another item on to-do lists.