Princeton taxpayers sue Princeton University over tax exempt properties

Worth reading:

Free lectures, admission to athletic games and concerts, even shuttles to Trader Joe’s are some of the perks that neighbors of Princeton University get from New Jersey’s only Ivy League school.
A growing number of residents, though, resent the gestures. Riding a national wave of discontent with nonprofit institutions, they’re suing to challenge the tax-exempt status of Princeton, whose $22.7 billion endowment makes it the fourth-richest U.S. university. The outcome could cut homeowners’ annual property taxes, averaging 7,699, by a third. It also could end the freebies that make Princeton a cushy oasis while other New Jersey towns, burdened by high public-worker costs and flat state aid, struggle to maintain basic services.

Is there a national "wave" of discontent with nonprofits?  I didn't sense that, but I certainly think that SHU should have to make a bigger monetary contribution to SO and the SOMSD.

http://www.bloomberg.com/news/articles/2016-05-02/princeton-s-neighbors-say-to-heck-with-freebies-we-want-cash

The article is misleading about how high Princeton's taxes are.  Yes, Princeton's taxes are very high in absolute terms, but that's because houses there have very high values.  Compared to income and Equalized Valuation, Princeton's taxes are low.  Nonetheless, I say go Princeton (residents!), because if they get Princeton University to pay for a fairer share of services, it'll help college towns who are truly hard pressed.

Though the problem NJ has with tax exempt properties isn't that they exist; it's that they are unevenly concentrated and thus different communities end up shouldering more than their share of a burden that ought to be carried regionally or statewide.

The litigation involving Princeton University has been going on for a couple of years.

Princeton, the university, is an extraordinarily successful profit-making venture (in terms of earnings from patents and other products of its research facilities).  Other institutions of higher learning are not. 

I agree that the whole problem is the heavy reliance on property taxes to fund municipal and school services in New Jersey.   Some towns have a non-profit with large property holdings.  Other towns have substantial highway business zones (such as Route 22) or profitable malls on their outskirts.  Some win, some lose under the current system.

The problem won't be solved by suing every non-profit for property taxes, on an individual basis. Some more substantive tax and funding reform will be needed.

Unfortunately Seton Hall has the additional shield of being a religious institution.  

( No knock on religion, just on owners not paying their fair share and this being yet another exemption.)

Agree with Nohero.  Non-profits are unevenly distributed throughout the state but so are corporate/industrial parks, shopping malls, business zones, airports, etc.  Newark has the airport, Millburn has the mall, Livingston has substantial corporate properties and Route 10.

I don't think there is growing disenchantment with non-profits.  It's more a process of looking where there are opportunities to increase tax revenue.  Non-profits are an easy target especially when they have deep pockets.

jimmurphy said:

Unfortunately Seton Hall has the additional shield of being a religious institution.  

( No knock on religion, just on owners not paying their fair share and this being yet another exemption.)

Technically, that's not "additional".  It's a nonprofit institution of higher learning, same as the others.