David Sirota’s blog “The Lever” reports that New York may tax two unusually rich private universities—New York University and Columbia University—for the benefit of the city’s underfunded public universities. This would be a bonanza for the City University of New York. There’s a long road ahead, and you can be sure that NYU, Columbia, and their powerful trustees will fight against taxation. As in the prior post, this piece was written by Katya Schwenk.

No More Private U Tax Breaks

Columbia and New York University (NYU) may lose hundreds of millions in property tax breaks under a new plan put forward by New York lawmakers, and the resulting new tax revenue would instead go towards New York City’s public university system.

The uber-rich private universities — both of which have endowments in the billions — pay virtually no property taxes despite being some of New York City’s largest landowners, thanks to tax breaks from the state. Columbia and NYU combined own more than 400 properties, worth over $7 billion in total. An investigation by the New York Times and the Hechinger Report in September found that the two schools together save $327 million a year thanks to the state’s tax breaks, and noted that the millions the universities spend on lobbying help them maintain such a favorable system.

On Tuesday, state lawmakers unveiled a package of legislation that aims to change this. The two bills would end property tax breaks for any private universities in New York that would owe more than $100 million in property taxes. The new tax money would be given to the City University of New York, which is facing a budget squeeze, and narrowly avoided devastating cuts to its colleges and programs this year.

Enacting the proposal will likely be a long road: The proposal will require a change to New York’s constitution, which means the issue will ultimately come before voters in a referendum. Yet its advocates say such a plan to change the tax breaks, which have stood for more than a century, is far overdue. The universities, said New York assemblyman Zohran Mamdani, the bills’ sponsor, have “gone beyond primarily operating as institutions of higher education and are instead acting as landlords and developers.”