Princeton Residents Challenging University's Exempt Status Won't Have to Pay Court Fees: Report

Princeton, NJ -- Residents challenging Princeton University’s status as a tax exempt institution won’t have to pay an additional court fees, which could have added up to $25,450, Planet Princeton reports.

Judge Vito Bianco issued his ruling this week, saying the tax court rules apply to cases challenging tax assessments, but not tax exemptions, according to the report. He said that typically, a municipality will challenge an institution’s tax exempt status, and municipalities are in a better position to handle the costs, based on a fee of $250 for the first assessed parcel of land, and $50 for each parcel of land thereafter.

The municipality has remained neutral on the issue.

The university’s lawyer had been arguing the residents should be required to pay the fee, while the plaintiffs’ attorney has argued the cost would present a hardship to the citizens, according to the report.

The lawsuit challenges the tax-exempt status of some of the University’s buildings that are used for commercial use, such as eateries.

The University is also being accused of acting like a for-profit institution, including holding a licensing agreement for a chemotherapy drug.