Res. No. 772

Resolution calling on the New York State Legislature to pass, and the Governor to sign, S.1419/A.898 to allow the alteration or repeal of real property tax exemptions for private institutions of higher education

By Council Member Cabán, the Public Advocate (Mr. Williams), and Council Members Marte, Lee, and Hudson

Whereas, New York State (NYS) Senate bill S.1419, introduced on January 9, 2025, by State Senator John Liu, representing the 16th State Senate District in Queens, and companion Assembly bill A.898, introduced on January 8, 2025, by State Assembly Member Zohran Mamdani, representing the 36th State Assembly District in Queens, would call for a concurrent resolution of the Senate and Assembly to propose an amendment to Section 1 of Article 16 of the NYS Constitution, “in relation to real property tax exemptions for educational institutions”; and

Whereas, That proposed amendment would provide “that exemptions of real or personal property used exclusively for private institutions of higher education may be altered or repealed”; and

Whereas, In order to amend the NYS Constitution, legislation must be passed in two consecutive legislative sessions, and NYS voters statewide must ultimately vote to approve the change; and

Whereas, The memorandum accompanying the Senate bill explains that some large private higher education institutions, which are exempt from NYS property taxes, have “acquired substantial amounts of property,” thus depriving the tax base “of significant revenue that funds critical government services”; and

Whereas, The alteration or repeal of that exemption would make available “much needed tax revenue for New Yorkers”; and

Whereas, As discussed by legislators, the proposed alteration would retain the annual real estate tax exemption up to $100 million, thereby affecting only Columbia University and New York University (NYU), both located in New York City (NYC); and

Whereas, According to legislators, it could not have been foreseen that universities would become the very large landowners that they are today and, thus, would enjoy the very large exemptions that they now do; and

Whereas, According to an investigation by The New York Times and The Hechinger Report, Columbia University is the wealthiest private landowner in NYC, with holdings valued at almost $4 billion and property tax savings of about $180 million annually, while NYU enjoys property tax savings of about $145 million annually; and

Whereas, While it is clear that Columbia University and NYU make many economic and cultural contributions to the NYC landscape and to NYC residents, NYC is facing its own budget issues, which means that full funding for The City University of New York (CUNY) is in jeopardy; and

Whereas, CUNY is often described as the premier urban university in the United States (U.S.), with its 25 campuses and about 233,000 students, and is often characterized as the driver of economic and social mobility for working-class and low-income New Yorkers; and

Whereas, According to legislators, once the statewide referendum has been passed by voters, a second piece of legislation would then establish the repeal of the property tax exemption and make CUNY the recipient of the new tax revenue recovered each year from Columbia University and NYU; and

Whereas, Senator Liu, even though he is a longtime Columbia University faculty member, noted that “[a]t a time when [CUNY] continues to be more and more starved of resources, we are talking about public resources here”; and

Whereas, According to Assembly Member Mamdani, it is time for Columbia University and NYU to “repair their relationship…with the working class” of NYC and for the recovered funds to be invested in CUNY “so that we can finally live up to the promise where every single student who desires a quality higher education can receive that very education”; and

Whereas, Assembly Member Mamdani also commented that “more than 100,000 CUNY undergraduates are from families who make less than $30,000 a year” and that any claim that Columbia University and NYU “would have to increase student tuition to pay for their property taxes is unfounded,” given their combined endowments totaling over $20 billion; and

Whereas, James C. Davis, president of the Professional Staff Congress, which represents CUNY faculty and staff, noted that the distribution to CUNY of the recovered tax funds would “make a big difference” in CUNY’s retention and graduation rates; and

Whereas, Senator Liu remarked that “this is a point where we have to look where all revenues are coming from and where all revenues are leaking…[and] have to stop those leaks”; now, therefore, be it

                     Resolved, That the Council of the City of New York calls on the New York State Legislature to pass, and the Governor to sign, S.1419/A.898 to allow the alteration or repeal of real property tax exemptions for private institutions of higher education.

LS #12090, 3737, 15390, 15419, and 18885

2/24/2025

RHP