local real estate tax status of college owned land used by a for profit entity

[HRZ]

What is the name of your state?Pennsylvania

Any thoughts on tax status of college owned lands off the so called campus ?

College owns the land, enters into agreement with for profit entity ( or one that is not a purely public charity as defined in Pa) for the purposes of other entity to build and own the building .

Various buy sell and operating agreements will exist and the buildings might contain multiple uses including dwelling units, retail stores, restaurants, medical offices, you name it....all of which besides the dwelling units are open to public and seek to make a profit serving public , all the dwelling units are rented to students or staff.

THere seems little doubt that the entire building is taxable for local real estate purposes

My question is what about the land , is it taxable or not taxable?

Thanks
.......

Such hydride ownership is attractive for the Federal and State tax benefits available to a for profit owner that otherwise are unusable by an exempt entity, such as depreciation and local land development and permit fees ..and it's pretty easy to structure the deal such that it barely turns a taxable profit for the building owners on operations .

 

[LdiJ]

What is the name of your state?Pennsylvania

Any thoughts on tax status of college owned lands off the so called campus ?

College owns the land, enters into agreement with for profit entity ( or one that is not a purely public charity as defined in Pa) for the purposes of other entity to build and own the building .

Various buy sell and operating agreements will exist and the buildings might contain multiple uses including dwelling units, retail stores, restaurants, medical offices, you name it....all of which besides the dwelling units are open to public and seek to make a profit serving public , all the dwelling units are rented to students or staff.

THere seems little doubt that the entire building is taxable for local real estate purposes

My question is what about the land , is it taxable or not taxable?

Thanks
.......

Such hydride ownership is attractive for the Federal and State tax benefits available to a for profit owner that otherwise are unusable by an exempt entity, such as depreciation and local land development and permit fees ..and it's pretty easy to structure the deal such that it barely turns a taxable profit for the building owners on operations .

People are not in business to avoid a profit. People are not interested in tying up major financial resources in a real estate venture only not to make any money off of it.

Why do you care what they are doing?

 

[HRZ]

IF you lived down the street a block or so and your local tax bill was soaring due to very high number of exempt operations you'd soon take a keen interest in local issues. Not to mention parking wars and special rules.
(Some) People are in business to structure profits for minimal tax exposure ...and one leading University in its local tax case was called a hedge fund which happens to run an occasional class.