Wednesday, November 16, 2016

Princeton Settles Property Tax Suit, But Tax Exemption in New Jersey Still Unsettled

Pu-logo-retinaLast month Princeton University announced that just days before trial was scheduled to begin it had settled the property tax exemption lawsuit brought by several local residents. As detailed in the announcement, Princeton committed to both pay millions of dollars to Princeton homeownersover six years through a tax credit and to also make over $1 million in contributions over three years to a local nonprofit to help economically disadvantaged residents obtain housing. The total cost to Princeton will be over $18 million.

While the settlement resolves Princeton's property tax exposure for recent years, it leaves open the possibility of suits challenging the university's property tax exemption at some point in the future. It also of course does not resolve the lawsuits currently pending against 35 nonprofit hospitals brought by local officials and challenging the hospitals' exemptions from property taxes, although at least two of those hospitals have already settled the claims against them. Legislation to try to resolve those suits has apparently stalled in the New Jresey Legislature.

Coverage of Princeton settlement: Bloomberg; Wall Street Journal.

Lloyd Mayer

https://lawprofessors.typepad.com/nonprofit/2016/11/princeton-settles-property-tax-suit-but-tax-exemption-in-new-jersey-still-unsettled.html

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