Policy Objective:
To ensure that large, private, and tax-exempt higher education institutions contribute fairly to local and federal tax systems, particularly when they benefit from substantial property holdings, revenue-generating enterprises, or large endowments, while preserving support for academic, research, and nonprofit missions.
Background & Rationale:
Many colleges and universities—particularly elite private institutions—enjoy tax-exempt status as nonprofit entities. While their educational missions are valuable, many:
• Own large tracts of tax-exempt land,
• Operate profitable commercial ventures,
• Accumulate multi-billion dollar endowments,
• Benefit from public infrastructure and services without directly funding them.
In cities and towns with limited tax bases, this creates fiscal pressure on public services like fire, police, and schools. This policy proposes a fair and tiered framework for these institutions to contribute financially while maintaining their core nonprofit benefits.