Committee gives due-pass recommendation to bill exempting student housing on university land from property tax

Senate Bill 112 would exempt from property tax student residences constructed on university-owned land through public–private partnerships where the university retains fee ownership.

Sponsor and proponents said the change responds to a new assessor interpretation that treats student housing built under certain P3 arrangements as taxable. David Campbell, executive director of Lobo Development Corporation, testified that the bill “attempts to exempt property taxes on student residences built on university owned land through public private partnerships” and argued the exemption would reduce student housing costs and support student success.

Committee discussion focused on county revenue impacts and the assessor’s authority. Senator Woods noted the change reduces revenue that counties now receive from property tax and asked whether counties had been consulted. Proponents responded that the exemption is consistent with the state Constitution’s existing treatment of university-owned property and that the bill is intended to mirror that treatment when the university retains ownership and the beds serve students.

The committee voted to give SB 112 a do-pass recommendation; the roll call recorded an 8–3 vote in favor.

Actions at the meeting: committee moved SB 112 with a due-pass recommendation (8–3). The bill text instructs that housing meeting the described criteria would be non-taxable if enacted.

What’s next: With a committee due-pass recommendation, the bill advances to the next stage of Senate consideration; counties and assessors remain potential stakeholders for implementation detail and administrative guidance.