New York Assembly Bill A11160

New York 2025-2026 Regular Session

• Introduced: 4/28/26
• Refer: 4/28/26

Caption

Repeals the tax exempt status of private universities that receive real property tax exemptions of one hundred million dollars or more

Summary

This bill would amend New York’s real property tax law to remove the property tax exemption for educational institutions that are organized and operated exclusively for educational purposes if the amount of real property taxes exempted for the property in the prior fiscal year is $100 million or more. In practical terms, it targets very large private higher education institutions whose tax-exempt property holdings generate exceptionally large foregone tax revenue for local governments. The bill also directs the revenue collected from these newly taxable private higher education facilities to the City University of New York (CUNY). It further provides that this money would supplement, rather than replace, existing state support for CUNY, and bars the governor from reducing other CUNY funding in response to the new revenue. The act would take effect only if a related constitutional amendment on educational property tax exemptions also takes effect.

Impact

The bill would narrow the scope of Real Property Tax Law section 420-a by creating a new exception to the educational exemption for institutions whose prior-year exempt property taxes reach $100 million or more. That would expose certain large private universities and similar educational corporations to local property taxation, altering long-standing tax treatment for a small number of high-value institutions. It would also create a dedicated funding stream for CUNY and constrain the state budget response by requiring that the new revenue supplement, not supplant, existing state aid.

Sentiment

The available record shows no committee transcript or vote history, so there is no direct evidence of debate or formal support/opposition in the materials provided. Based on the bill’s structure, it appears designed to redirect resources from highly tax-advantaged private universities toward public higher education, suggesting a policy rationale focused on equity and fiscal relief for local tax bases. The lack of recorded votes or discussion means the overall sentiment cannot be measured from the provided history.

Contention

The main point of contention is likely to be whether large private universities should continue to receive broad property tax exemptions despite the scale of the public subsidy they receive through foregone taxes. Supporters would likely argue that institutions with very large exemptions should contribute to local tax rolls and that the revenue should strengthen CUNY. Opponents would likely argue that taxing educational property could burden nonprofit higher education, increase tuition or operating costs, and set a precedent for limiting exemptions for other educational institutions. The bill’s linkage to a constitutional amendment also suggests that the exemption change may raise legal or constitutional concerns.