BILL NUMBER: S7798
SPONSOR: LIU
 
TITLE OF BILL:
An act to amend the real property tax law, in relation to repealing the
tax exempt status of educational institutions costing one hundred
million dollars or more a year in real property tax exemptions
 
PURPOSE:
To allow New York State to tax higher education institutions whose real
property tax exemptions are at or exceed one hundred million dollars or
more per year.
 
SUMMARY OF PROVISIONS:
Section 1 amends subdivision 1 of section 420-a of the real property tax
law by adding a new paragraph (c) to:
*Repeal the real property tax exemption for private institutions used
exclusively for educational purposes, whose real property tax exemptions
cost one hundred million dollars or more a year.
*Direct funds from the property taxes imposed on these private education
institutions to the City University of New York.
Section 2 sets forth the effective date.
 
JUSTIFICATION:
Private universities benefit from tax-exempt status under New York State
law and thus do not pay property taxes like other private landholders.
According to NYC DOF figures for fiscal year 2024, these exemptions
cumulatively cost New York City $659 million in revenue each year.
This legislation would end the property tax exemption for private
universities whose property tax exemptions cost $100 million or more,
and direct the resulting revenue to CUNY. This legislation is contingent
upon the passage of a corresponding constitutional amendment that would
allow for the alteration or repeal of tax exemptions of real or personal
property for institutions of higher education.
 
LEGISLATIVE HISTORY:
New bill.
 
FISCAL IMPLICATIONS:
Revenue generated.
 
EFFECTIVE DATE:
The act shall take effect on the same date as a concurrent resolution
amending the constitution, entitled "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 educa-
tional institutions", takes effect.

Statutes affected:
S7798: 420-a real property tax law, 420-a(1) real property tax law