Revoke the property tax exemptions of major private universities—specifically Columbia University and New York University

[Ralph Yozzo]

Overview of the REPAIR Act Legislation

The REPAIR Act is a legislative package consisting of two bills designed to revoke the property tax exemptions of major private universities—specifically Columbia University and New York University—and redirect that revenue to the City University of New York (CUNY) system.

Key Details of the Legislation and Support

• Assembly Sponsorship: State Assembly Member Grace Lee introduced a bill in late April to allow the revocation of these property tax exemptions, with Assembly Member Claire Valdez signing on as a co-sponsor. Assembly Member Mamdani was also one of the first to introduce the REPAIR Act.
• Senate Sponsorship: In the State Senate, the legislation is backed by Cordell Cleare and John Liu, the latter of whom reintroduced both bills at the start of the 2025-26 legislative session.
• Targeted Revenue: While the legislative package contains two parts (one to end the exemptions and one to redirect the revenue), only the first bill regarding exemption revocation has been introduced in the State Assembly so far.

Columbia University's Property Holdings and Tax Savings

• Land Ownership: Columbia is the largest private landowner in New York City, holding more than 320 properties valued at nearly $4 billion as of 2023.
• Tax Savings: Under current New York State law, educational, religious, and charitable organizations are exempt from property taxes. This exemption saves Columbia approximately $182 million annually, as it only pays taxes on properties not utilized for educational purposes.
• Criticism of Exemptions: Lawmakers like State Sen. Liu argue that these tax breaks were meant for smaller nonprofits and that large universities have outgrown the need, potentially creating perverse incentives to acquire excess property.

CUNY's Financial Needs

• Budget Breakdown: CUNY receives 60 percent of its operating budget from public state funding, while the remaining 40 percent comes from tuition.
• Systemic Challenges: According to the New York City Council, CUNY faces budget cuts and ongoing disinvestment. The system lacks sufficient funding for low-income programs and disability services, requires facility renovations, and serves a student population where over 55 percent report household incomes below the city poverty line.

Columbia's Defense and Counter-Arguments

• Community Benefits Agreement (CBA): A Columbia spokesperson defended the tax exemption by pointing to a CBA signed in 2009 during its West Harlem campus expansion. Under this agreement, the university committed to investing $170 million locally.
• Fulfillment Discrepancies: The promised $170 million is structured to be paid over 36 years, averaging about $4.7 million annually—a figure that represents less than 3 percent of Columbia's annual $182 million tax savings. Furthermore, as of October 2025, Columbia has only fulfilled 6 out of its 39 total commitments under the agreement.