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

2025 Regular Session Introduced by Grace Lee and 2 co-sponsors

Allows altering or repealing property tax exemptions for private, nonprofit higher education institutions in NY.

OPINION REFERRED TO JUDICIARY

Overview

Bill: A11039 (2025-2026 Session, New York)

Type: Concurrent resolution proposing a constitutional amendment

Subject: Allows alteration or repeal of real property tax exemptions for private institutions of higher education

Sponsor(s): Assembly Member Grace Lee (primary); co-sponsors Valdez, Zinerman

Related: Senate companion S01419 (as indicated)

Purpose and intent

The bill proposes amending Section 1 of Article 16 of the New York Constitution.

Core change: Exemptions from taxation may be altered or repealed except for exemptions that apply to real or personal property used exclusively for religious, educational, or charitable purposes run by non-profit organizations. However, specifically, exemptions for real or personal property used exclusively for private institutions of higher education may be altered or repealed.

In short, it clarifies/permits the alteration or repeal of property tax exemptions currently afforded to private, non-profit higher education institutions.

Key provisions

Constitutional amendment language (Section 1 of Article 16) would be amended to state:

Exemptions from taxation may be altered or repealed, with the exception of certain religious, educational, or charitable exemptions that are restricted to non-profit corporations/associations operated exclusively for those purposes.
Crucially, real or personal property exemptions used exclusively for private institutions of higher education may be altered or repealed.

Vote and ratification process:

If the Senate concurs, the proposed amendment would be sent to the first regular legislative session after the next general election for consideration.
As required by Article 19, it would be published for 3 months prior to that election.

Who/what is affected

Private, non-profit institutions of higher education in New York that currently receive real property tax exemptions would be directly affected, as those exemptions could be altered or repealed under the proposed constitutional change.

Other exemptions for religious, educational, or charitable purposes owned by non-profits would remain subject to alteration or repeal, but the amendment focuses on preserving or clarifying the ability to alter higher education exemptions specifically.

Procedural/timeline aspects

This is a constitutional amendment proposal, not immediate law.

Step 1: If the Assembly passes, the measure would be sent to the Senate for consideration (and vice versa if the Senate has already acted).

Step 2: If both chambers concur, the joint resolution would be referred to the electorate for ratification at the next regular election after the sponsored session, following publication requirements.

Publication requirement: The amendment must be published for 3 months prior to the next general election as per constitutional procedure.

Potential impact (high-level)

Fiscal/allocative impact on property tax revenues for private higher education institutions in New York.

Greater legislative flexibility to modify or revoke property tax exemptions for these institutions in the future.

Implications for private colleges and universities’ budgeting, campus property classifications, and potential shifts in local government tax bases.

The change would not affect exemptions for religious or charitable organizations organized for those purposes (as defined by law) but would allow alteration or repeal of the higher-education exemption.

Bill