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

HB 7147 allows municipalities to tax the investment income of private universities meeting specific criteria. It applies only to institutions with over $300 million in assets and where more than half of students attend classes in that municipality. The tax, capped at 2% of the institution's net investment income, requires a local legislative vote and must be paid in one or two installments. Municipalities would administer the tax through their tax collectors, with forms provided by the state revenue office. This bill does not affect universities with special tax exemptions, such as Yale or Trinity College.