The proposed legislation, General Assembly Raised Bill No. 7147, seeks to empower municipalities to impose a tax on the endowment funds of private institutions of higher education located within their jurisdiction. This tax would apply to independent educational institutions with an aggregate fair market value of assets exceeding three hundred million dollars. Specifically, municipalities where more than fifty percent of the students from such institutions are enrolled can levy a tax of up to two percent on the net investment income of these institutions, contingent upon an affirmative vote from the municipality's legislative body.

The bill outlines the administrative framework for this tax, stating that the municipality's legislative body will determine the payment structure—either as a single installment or in two semiannual installments—and will set the due dates for these payments. The tax collection will be managed by the municipality's tax collector, with necessary forms and regulations to be established by the Commissioner of Revenue Services. The act is set to take effect on October 1, 2025, and will apply to assessment years commencing on or after that date.