Princeton Will Pay $18 Million to Settle Residents’ Tax Case

Princeton University agreed to pay more than $18 million to settle a lawsuit by local homeowners who claimed the fifth-richest U.S. school should be paying property taxes on its New Jersey campus. The settlement, announced by the school, came days before the scheduled start of a trial between the Ivy League university and local homeowners. A ruling against Princeton may have had far-reaching implications, upending the relationship between local communities and non-profit schools, hospitals and other organizations that don’t pay property taxes but put a strain on roads, emergency operations and other municipal services.