AN ACT AUTHORIZING MUNICIPALITIES TO IMPOSE A TAX ON THE ENDOWMENT FUNDS OF PRIVATE INSTITUTIONS OF HIGHER EDUCATION.

HB 5617 would allow cities and towns to impose a tax on the endowment funds of private colleges and universities located within their borders. The bill authorizes municipalities to levy this tax directly on the investment assets (endowments) held by these institutions, not on their general operations or property. It does not require municipalities to implement such a tax but provides them with the legal authority to do so if they choose. This change would primarily affect private higher education institutions with significant endowment assets in participating municipalities.