Many in the community recognize Chapman's various contributions to the local economy however, campus administrators are often asked whether the university pays property taxes and what our impact is on the local economy. In general, we pay taxes on properties we own that we do not use for an educational purpose – for example, the homes surrounding the campus that our faculty and staff members lease. Chapman does not pay property taxes on academic buildings that are used 24/7 for instructional and co-curricular purposes. For the fiscal year ending May 31, 2012, Chapman University paid $616,718.28 in property taxes.
In addition, periodically Chapman conducts an economic impact study and publishes the findings. Generally, cities that have a university as part of the community enjoy a level of financial stability due to the university’s presence. Home values are more stable, sales tax revenue is stronger, and employment is higher because of the contributions made to the local economy by the university partner. In particular local small business appear to benefit strongly from Chapman students, faculty and staff members. We believe that Chapman’s economic contributions outweigh the benefit to the university of our non-profit status as it relates to property taxes.
Here is a copy of Chapman's 2009 Economic Impact Study, conducted by the A. Gary Anderson Center for Economic Research at the George L. Argyros School of Business and Economics
Here are some links to other studies supporting our view:
Ohme, A. A. (2003). The Economic Impact of a University on Its Community and State: Examining Trends Four Years Later. University of Delaware.
Lester, R. K. (2005). Universities, Innovation, and the Competitiveness of Local Economies: Summary Report from the Local Innovation Project - Phase I. IPC Working Paper Series. Massachusetts Institute of Technology.
(2008). Education and Innovation: Enterprise and Engagement - The Impact of Princeton University. Princeton University Office of Community and Regional Affairs.