Start Of Princeton University Tax Exempt Case Postponed

Princeton, NJ -- A case challenging Princeton University’s tax exempt status has been postponed until Oct. 17, Planet Princeton reports.

It had been slated to begin on Thursday, but there have been active negotiations between the university and a group of residents who brought the case, 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.

Former Borough Councilman Roger Martindell told the Princeton Packet earlier this week that if the challenge is 100 percent successful, tax bills would go down by about a third. He also said he doesn’t believe that outcome is likely.

Judge Vito Bianco has also ruled the residents won’t have to pay additional court fees related to the case, and has denied attempts by the university to have the case thrown out.

Bianco, who ruled last year that Morristown Medical Center was not tax exempt for three years.

After Bianco ruled the medical center was no longer tax exempt, it agreed to pay $15.5 million in taxes to the town over the next decade.

The university has also disputed a ruling that it bears theburden of proof that it should be tax exempt. It contends that it is the defendant, and that the burden of proof should rest with the plaintiffs.

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