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New Haven Political Leaders Support Tax On Yale's Endowment

Jessica Hill

Connecticut State Senate President Martin Looney and New Haven Mayor Toni Harp want to start taxing money made by Yale’s endowment.

Yale University doesn’t pay federal, state or local taxes on its academic property because it’s a non-profit. The school has a $25.6 billion endowment. A bill before the Connecticut General Assembly would tax income on university endowments, like interest or investment dividends. 

Looney and Harp say that would encourage Yale to spend income from its endowment -- instead of holding onto it. And they say that spending could trickle down to improve New Haven.

Yale opposes the bill. The university says its endowment is untaxable under both the state constitution and federal law. If passed, the school would fight the bill in court.

Kathie is a former editor at WSHU.