Robert K. Durkee, VP, Princeton University
In his recent letter (“When a university tallies its own value,” Dec. 11), Helmut Schwab suggests that Princeton Borough taxpayers would be better off financially if Princeton University’s borough lands were filled with taxable residences and businesses, as is the case with the university-owned Princeton Forrestal Center lands in Plainsboro. But a recent report by an outside firm finds that this is not the case.
The report finds that borough taxpayers benefit financially from the university’s presence. This finding is consistent with the fact that according to county records, Princeton Borough taxpayers pay the lowest tax rate of any community in Mercer County when compared on an equalized basis. This means that an owner of a house in Princeton Borough pays less in property taxes than an owner of a house with the same market value in any of the other 12 municipalities in the county. He or she also pays a lower tax rate than an owner of a house with the same market value in Plainsboro.
Mr. Schwab specifically dismisses the impact of student spending at the “University Store.” Despite its name, the store is an independent, fully taxpaying business that operates at two locations in Princeton Borough, so it does contribute to the borough budget through the property taxes that it pays. Other taxpaying businesses in the borough that are associated with the university include the independent bookstore, Labyrinth, and the Garden movie theater. These taxes are in addition to what the university pays as the largest taxpayer in the borough and in addition to its other direct financial contributions, including its annual unrestricted contribution that this year amounted to $1.2 million.
Robert K. Durkee
Vice President and Secretary
Princeton University
