Princeton University has agreed to pay $18.2 million over the next several years to settle claims brought by a group of local residents that the university was improperly claiming property tax exemptions on facilities that actually are used as money-making enterprises.
The university announced the settlement, which will end five years of litigation, on Oct. 14. A trial had been scheduled to begin Oct. 17 in New Jersey Tax Court.
The settlement funds will be used to defray property taxes of local residents, which run an average of $16,000 a year, and to help provide housing for the town’s poorer residents, the university said in a statement.
The university will pay $2 million this year into a fund to be established to lower property taxes, and then $1.6 million a year for the following five years, according to the statement.