College towns in Connecticut are reassessing the amount of money they receive from colleges and universities, attempting to raise how much they obtain in taxes. Currently under Connecticut state tax law, institutions that have property used exclusively for educational purposes are exempt from paying taxes on those areas.
According to Marcia Bromberg, Vice President for Finance and Administration, Wesleyan owns approximately 290 acres of property, including the main campus and the newly acquired Long Lane site. In addition, the University owns about 260 houses and apartments.
While most of University property is used solely for educational or educational support related reasons, some of it has additional usages, according to Bromberg. This includes Broad Street Books, Memorial Chapel, and houses rented to University faculty and staff.
In addition to being exempt from paying taxes on property used for educational purposes, the University also does not have to pay taxes on other property that generates less than $6,000 in income per year. For example, according to Bromberg, the Chapel is only used for a small number of weddings each year and does not generate enough income to be taxed.
According to Frank Marchese, Middletown’s Tax Assessor, Wesleyan pays approximately $9-10 million in taxes annually. The University is currently exempt from paying about $170 million in taxes each year. The state reimburses the city to compensate for this exemption.
Despite recent discussions in other towns over possible ways to increase the tax revenue from a university, officials in Middletown have not voiced any concerns over the University’s taxes.
“Wesleyan and Middletown have a very strong relationship,” Bromberg said. “We have worked collaboratively to ensure that Wesleyan remains a good citizen and contributes to the well being of the community. We have no reason to believe that Middletown is planning any changes to the status quo.”
According to Marchese, his office receives the University’s tax reports every year. He said that his office has had a good relationship with Wesleyan.
“In Middletown I don’t see anything different right now, and that’s the way it’s been for years and years,” Marchese said.
It is unclear how the Long Lane property will factor into the University’s property tax reports. The University purchased property on Long Lane in 2000 from the state of Connecticut for $16 million, according to an Oct. 21, 2002 Office of University Communications informational release. A recent all-campus email update on campus construction from the Wesleyan Student Assembly said that the property is currently in the “environmental remediation stage,” which means that it is being prepared for construction and landscaping.
While Long Lane is still under construction, it still has a connection to the state, which could influence the University’s property taxes, although information could not be obtained on how much tax revenue Long Lang could potentially generate in the future.
“I haven’t seen any final agreement that it [Long Lane] has gone to Wesleyan,” Marchese said.
Leave a Reply