Public Interests, Private Institutions? Public Policy Challenges to Tax-Free Universities

Public Interests, Private Institutions? Public Policy Challenges to Tax-Free Universities

By: Wally Hilke and Amit Jain

127 Yale L.J. Forum 94

June 2, 2017

    It is no secret that students believe college is too expensive, and many blame the high costs of university on their tax-exempt status. In 2008, Senator Charles Grassley, as well as other politicians from both sides, criticized universities for “hoarding assets at taxpayer expense.” Universities have responded to this criticism by arguing that constitutional provisions protect their assets and property from taxation. This article explores the tax-exempt status of universities and specifically considers Yale University’s exemptions, since legislators can tax certain property owned by Yale. The article ends with examples of cities and states who can benefit from a similar strategy. For more information on this topic see: http://www.yalelawjournal.org/pdf/HilkeandJain_fshkhikk.pdf

 

dab