NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A8478
SPONSOR: Mamdani TITLE OF BILL:
CONCURRENT RESOLUTION OF THE SENATE AND ASSEMBLY proposing an amendment
to section 1 of article 16 of the constitution, in relation to real
property tax exemptions for educational institutions
PURPOSE:
To allow New York State to tax certain private institutions of higher
education.
SUMMARY OF PROVISIONS:
Section 1 amends section 1 of article 16 of the constitution to allow
alterations to or repeals of real or personal property tax exemptions
used exclusively by private institutions of higher education.
Section 2 clarifies how this act will conform to the requirements for
amending the constitution, set forth in article 19 of the constitution.
JUSTIFICATION:
Private universities benefit from charitable status under New York State
law and thus do not pay real property taxes like other private landhold-
ers. While benefiting from this status, private universities have
increasingly accumulated properties and depleted the state's tax base of
critical revenue. In New York City alone, private universities receive
cumulative exemptions costing $659 million, with Columbia University and
New York University accounting for almost half of this at $321 million.
By accumulating properties and evading property taxes, these insti-
tutions amass more wealth while shrinking the collective revenue pot
that funds municipal services-services they also rely on, including
Sanitation, the Fire Department and more.
In short, the spirit of New York State law is being violated-a number of
these institutions have developed an objective beyond educational
purposes: to serve as large landowners. This concurrent resolution would
allow New York State to tax higher education institutions. Opening the
constitution to this method of taxation would unlock much needed revenue
for New Yorkers.
LEGISLATIVE HISTORY:
New bill.
FISCAL IMPLICATIONS:
Potential benefits to the state tax base.
STATE OF NEW YORK
________________________________________________________________________
8478
2023-2024 Regular Sessions
IN ASSEMBLY
December 29, 2023
___________
Introduced by M. of A. MAMDANI, EPSTEIN, GALLAGHER, SHRESTHA, FORREST,
LEE, KIM, TAYLOR, MITAYNES, BICHOTTE HERMELYN -- read once and
referred to the Committee on Real Property Taxation
CONCURRENT RESOLUTION OF THE SENATE AND ASSEMBLY
proposing an amendment to section 1 of article 16 of the constitution,
in relation to real property tax exemptions for educational insti-
tutions
1 Section 1. Resolved (if the Senate concur), That section 1 of article
2 16 of the constitution be amended to read as follows:
3 Section 1. The power of taxation shall never be surrendered, suspended
4 or contracted away, except as to securities issued for public purposes
5 pursuant to law. Any laws which delegate the taxing power shall specify
6 the types of taxes which may be imposed thereunder and provide for their
7 review.
8 Exemptions from taxation may be granted only by general laws.
9 Exemptions may be altered or repealed except those exempting real or
10 personal property used exclusively for religious, educational or chari-
11 table purposes as defined by law and owned by any corporation or associ-
12 ation organized or conducted exclusively for one or more of such
13 purposes and not operating for profit; provided, however, that
14 exemptions of real or personal property used exclusively for private
15 institutions of higher education may be altered or repealed.
16 § 2. Resolved (if the Senate concur), That the foregoing be referred
17 to the first regular legislative session convening after the next
18 succeeding general election of members of the assembly, and, in conform-
19 ity with section 1 of article 19 of the constitution, be published for 3
20 months previous to the time of such election.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD89123-01-3
