Cornell MOU

Key points

Cornell owns about $8 million of taxable property in the City of Ithaca and pays about $96,000 in taxes.

Cornell owns $2.7 billion in tax-exempt property.

If all of Cornell's properties were taxable and Cornell paid the tax rate for 2023 — which is $12 per $1,000 in property value — it would pay roughly $32.5 million in taxes.

If Cornell University and Ithaca College paid taxes on all their properties, the property tax for an average house in Ithaca would drop between 40–45%.

Under the current MOU, Cornell contributed a $1.6 million PILOT to the city in 2023.

Ithaca must set the tax rate and budget for 2024 and Cornell has said it will contribute nothing if the city does not accept its offer of $4 million annually.
Key terms

MOU — A Memorandum of Understanding is an agreement between two parties that is clearly outlined in a formal document that can be legally binding depending on the language.

PILOT — A payment in lieu of taxes that tax-exempt organizations might provide to contribute to a city, state or federal government budget.

Tax-exempt status — Charitable organizations, churches and religious organizations, private foundations, political organizations and other nonprofits are all tax-exempt entities meaning they are not required to pay taxes at a local, state or federal level.

Tax-exempt property — Only property that is core to a tax-exempt entity’s operations would be free from paying taxes on property it owns.
Timeline

1994 — negotiations begin

1995 — MOU is established

2003 — MOU is amended

2011 — Mayor Caroyln Peterson (2004-2011) asked for MOU increase

2013 — Mayor Svante Myrick asked for payment increase

2023 — MOU amendment negotiations occur

2024 — MOU is set to expire

2044 — next expiration

The Ithacan

The Ithacan

The Ithacan

The Ithacan