I n March 2016, as New Haven struggled to balance its shrinking budget, Mayor Toni Harp joined alders and local unions calling for a State Senate bill to help fine-tune Yale University’s property-tax-exempt status. Universities and their medical centers are registered with the Internal Revenue Service as 501(c)(3) charitable nonprofit groups. Because of the public services that higher-education institutions provide to surrounding communities, their property holdings are exempt from taxation in all 50 states.
