New Haven Finance Committee: 56% of City Real Estate Is Tax-Exempt

New Haven Finance Committee Hears Grand List Briefing: 56% of City Real Estate Is Tax-Exempt

The New Haven Board of Alders Finance Committee received its annual Grand List briefing on March 9, 2026, learning that the city's 2025 Grand List — the official record of taxable and tax-exempt property used to calculate the city's revenue base — has grown to $9.26 billion, a 2.48% increase from the prior year's $9.03 billion.

But the headline from Acting City Assessor Alexzander Pullen's presentation was not the growth: it was the persistent tax-exempt gap. Of all real estate in New Haven, 56% remains off the tax rolls, valued at approximately $10.6 billion. Only 44% of property — assessed at $7.89 billion — is taxable.

Yale Dominates the Tax-Exempt Landscape

Yale University holds the largest share of tax-exempt real estate in New Haven by a wide margin: the university owns approximately 43% of all exempt property, or roughly $4.5 billion in assessed value. Yale New Haven Hospital accounts for another 17% of exempt real estate, at approximately $1.75 billion.

Pullen noted that Yale removed only two properties from the tax rolls this year, valued at $2.6 million — a relatively modest change compared to 2023, when the university purchased a medical-tech complex worth over $56 million in assessed value that moved off the taxable rolls.

The concentration of tax-exempt property in the hands of a few large nonprofit institutions is a long-running fiscal challenge for New Haven and a regular topic of discussion at Finance Committee meetings. The city relies heavily on Yale's voluntary payment agreement — the new $230 million deal announced just days earlier on March 6 — as a partial substitute for the property tax revenue it cannot collect from the university.

Grand List Growth Driven by New Construction and Deferred Development

The 2.48% increase in the Grand List was attributed to three sources, according to Pullen:

• New construction permits contributing approximately $23 million in new taxable value
• Previously deferred developments phasing onto the tax rolls, adding roughly $90 million
• Nonprofits failing to reapply for exemptions and properties changing ownership status

The net taxable Grand List — covering real estate, personal property, and motor vehicles — stands at $9,258,290,680.

A statutory requirement to republish the Grand List by April 15 under recent legislation was noted, along with changes to motor vehicle depreciation schedules and a new veterans homestead exemption.

Alders React as Budget Season Opens

The briefing came as the city is preparing to consider Mayor Justin Elicker's proposed $733.3 million budget for fiscal year 2026-27, which includes a 4.4% spending increase and a property tax increase. The Finance Committee is the body responsible for reviewing and recommending the final budget to the full Board of Alders.

Alder Richard Furlow captured the stakes during the meeting. "The majority of us are one paycheck away from being booted if things get out of control," Furlow said, referencing the budget pressures facing New Haven's predominantly working-class resident base.

In addition to the Grand List briefing, the committee also voted to authorize a lease for Club Car golf carts and approved the reclassification of Labor Staff Attorney positions. Specific terms of the golf cart lease were not included in the publicly available agenda documents.

Budget Workshop Scheduled for March 19

The Finance Committee has scheduled a follow-up budget workshop session for March 19, 2026, which will focus on the Annual City Budgets for the upcoming fiscal year. The workshop is expected to include departmental presentations and a deeper review of spending proposals across city operations.

Public meeting materials are available through Legistar, the city's legislative information system. Residents interested in the budget process can review upcoming agendas and past meeting minutes on the New Haven city website.

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