How Will Princeton Negotiate With Its Tax-Exempt Institutions?

Princeton Council is reviewing how it negotiates with tax-exempt institutions in town and discussed the issue in closed session on Monday night.

And while there’s always talk about the Payment in Lieu of Taxes (PILOT) that Princeton University pays to the town, the council is now considering the issue for all tax-exempt institutions in town.

Other tax exempt organizations in town include The Institute for Advanced Study, Westminster Choir College, Princeton Theological Seminary, Tenacre and multiple private schools, among others.

Currently, Princeton receives voluntary contributions from the Seminary, IAS, Tenacre, Princeton University, Princeton Community Village and Elm Court.

“There are certainly other communities that have tried to create a standard that they implement across the board,” Mayor Liz Lempert said.

An ad hoc group of residents and officials has been looking at how other towns deal with their tax-exempt entities. The group includes Lempert, council members Bernie Miller and Jo Butler, Scott Sillars, Brian McDonald and Brad Middlekauff.

The group has been looking at cities and towns that have things in common with Princeton, including Cambridge, Mass., Boston, Hanover, N.H., New Haven, Conn. and Philadelphia.  

No date has yet been set as to when officials will begin PILOT negotiations with Princeton University and new President Christopher Eisgruber.