Without its tax-exempt status as a nonprofit, Syracuse University would pay the city $24 million in taxes every year.

This was discovered by Thomas DiNapoli, New York State comptroller, who spoke at city hall on Wednesday morning alongside the city’s mayor, Stephanie Miner.  DiNapoli came to Syracuse to speak on the issue of tax-exempt properties burdening the state. He chose to come to Syracuse specifically because Miner had raised this issue with him shortly after she became mayor.

SU makes up a part of the 51 percent of tax-exempt properties in Syracuse — which have a property value of nearly $5 billion, according to a report on property tax exemptions in New York State by DiNapoli. He added that among cities in New York, Syracuse had the 10th highest percentage of tax-exempt properties.

He said while SU is not required to pay any amount for property taxes because of its status as a nonprofit institution, the university has taken a strong initiative to help support the city that surrounds the school.

“Here in Syracuse we have a case of a public official taking a very proactive approach to deal with this issue to offset at least some of the impact of the tax exemptions,” he said. “The city has worked closely with Syracuse University to reach new voluntary services agreements. These agreements extend to 2016, and provide the city approximately $1 million per year.”

DiNapoli was referring to the agreement that Chancellor Nancy Cantor and Miner had established in 2012, with SU paying the city $500,000 a year, added onto the $392,000 per year agreement that was also made in 1993. In addition to that amount, SU also provides the city with $100,000 a year for the Carrier Dome.

Miner also commended SU for taking proactive measures to provide Syracuse with additional revenue, including SU’s initiatives to reinvest into the city, such as Say Yes to Education, The Warehouse downtown and the Near West Side Initiative. She added that SU had been very receptive to the agreement, which they were not required to do.

“Syracuse University took a great step forward in agreeing to do this with us,” she said. “Do not underestimate the importance and sacrifice SU took by being first with this. If Syracuse University and the chancellor had said to me ‘go pound salt,’ that’s about all I could have done.”

In Ithaca — a city with 62 percent of its property tax-exempt — Cornell University has a similar arrangement, paying $1.9 million in 2008 and $1.6 million in 2009, according to DiNapoli’s report.

Miner added that Syracuse would not be looking to increase the amount that SU agreed to pay, but rather looking at other nonprofit institutions in the city to follow their lead. She said multiple nonprofit institutions were using public services such as the fire department, the police department, sanitations department and the department of public works, but were not paying the costs, because of their tax-exempt status.

She said the city needs to continue approaching nonprofits to negotiate voluntary payment agreements, while continuing to come up with solutions to the issue.

Said Miner: “If you require, need, demand government services like police, fire and public works, it’s only fair you should pay for those services, as well.”

Published on October 24, 2013 at 1:27 am

Contact Alfred: alng@syr.edu

@alfredwkng