New York Assembly Bill A00898

New York 2025-2026 Regular Session

• Introduced: 1/8/25
• Refer: 1/8/25
• Refer: 1/29/25

Caption

Allows the alteration or repeal of real property tax exemptions for private institutions of higher education.

Summary

A00898 is a proposed constitutional amendment that would change New York’s property tax exemption rules for private institutions of higher education. Under current constitutional language, exemptions from taxation for property used exclusively for religious, educational, or charitable purposes are protected from alteration or repeal when the property is owned by qualifying nonprofit corporations or associations. This bill would carve out private colleges and universities from that protection by allowing exemptions for real or personal property used exclusively by private institutions of higher education to be altered or repealed by future law. Because it is a constitutional amendment, the proposal would not immediately change tax law on its own. Instead, it would first need to pass the Legislature in two successive sessions and then be approved by voters before the Constitution could be amended. If adopted, it would give the Legislature authority to revise or eliminate property tax exemptions for private higher education institutions, potentially affecting their operating costs, local tax bases, and the scope of existing nonprofit educational tax benefits.

Impact

The bill would amend Article 16, Section 1 of the New York Constitution to remove constitutional protection for property tax exemptions applicable to private institutions of higher education. That would allow the Legislature, through ordinary law, to alter or repeal those exemptions for real and personal property used exclusively by private colleges and universities. The measure would not affect exemptions for religious or charitable property generally, and it would not itself impose a tax; it would only change the constitutional limits on future tax policy.

Sentiment

Based on the bill text and available context, the proposal appears to be framed as a targeted tax-policy change rather than a broad overhaul of nonprofit exemptions. The sponsors’ support suggests interest in giving the state more flexibility to tax private higher education property, likely in response to concerns about revenue, fairness, or the size of tax-exempt holdings. No committee debate or recorded votes were provided, so there is no direct evidence of broader legislative sentiment, but the measure’s introduction by multiple Assembly members indicates at least some organized support.

Contention

The main point of contention is likely whether private colleges and universities should continue to receive constitutionally protected property tax exemptions. Supporters may argue that these institutions should contribute more to local tax rolls, especially where they own substantial property and receive other advantages. Opponents are likely to argue that removing the exemption could raise tuition or operating costs, reduce institutional resources, and undermine the nonprofit educational mission of private higher education. Because the bill targets only private institutions of higher education, debate would likely center on the fairness of singling out colleges versus preserving longstanding nonprofit tax treatment.