Syracuse auditor deems SU’s city tax payment insufficient in 62-page report
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Syracuse City Auditor Alexander Marion published a 62-page report detailing the city’s financial relationship with Syracuse University, urging the institution to contribute more to the city’s economy through taxes.
The Sept. 14 report states SU has been paying the city $2 million annually in lieu of taxes, which Marion said should increase. If it wasn’t for the university’s tax-exempt status, SU would contribute $16 million annually to the city and $19 million to the Syracuse City School District, according to the report.
The auditor’s office published the report to give the public a better understanding of the “stakes” in renegotiating another Payment in Lieu of Taxes agreement with SU.
The report comes after SU and the city of Syracuse’s PILOT agreement expired on June 30.
However, calling it a PILOT agreement is incorrect, Vice President of Communications for SU Sarah Scalese wrote in a statement to The Daily Orange. Instead, Scalese referred to it as a “services agreement,” which includes monetary payment and “substantial in-kind contributions.”
“They don’t pay us taxes. They are paying us this money, dare I say, in lieu of taxes,” Marion said. “What is a service agreement if not a PILOT agreement? I don’t understand the point the university’s trying to make with that.”
In the report, Syracuse Mayor Sharon Owens’ office doesn’t classify the agreement as a PILOT, affirming Scalese’s statement.
“The services agreement is not a payment in lieu of tax agreement, rather it represents an acknowledgment by the University of the impact of their organization on the services provided by the City without recompense,” the Mayor’s Office wrote in the report.
Scalese said the lack of consultation produced a “misrepresentation” of the relationship between the city and the university.
“The auditor’s report ignores the full scope of what the University contributes to our community,” Scalese said. “These include educational, cultural, financial, athletic, and clinical benefits and services, which are well beyond commitments contemplated in any single agreement.”
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Marion said he didn’t consult SU when creating the report, but that his office used entirely public data and information.
SU generated $1.8 billion in economic activity and accounts for one of every 13 jobs in central New York, according to a university study regarding the 2023-24 fiscal year. Scalese referenced the study in her statement, but Marion said he’s focused specifically on direct payment from the university and its tax-exempt status.
“I am the city auditor. I’m here to make sure that we are getting value for our limited resources, including the tax dollars,” Marion said. “I’m gonna be a watchdog (and) help (with) our tax dollars and what we have to spend money on.”
Owens also emphasized that SU relies on municipal services such as police and fire protection, snow removal and transportation infrastructure but does not pay the taxes that fund them.
“51% of the property in Syracuse is not taxable,” Owens said in the report. “So that means property owners like me and my neighbors, they are 100% of the burden for the services that taxes pay for.”
The report also detailed how much other private institutions pay their respective cities. Cornell University was included due to its proximity to Syracuse, Northeastern University for its similar size and revenue and Brown University because Providence is a similarly sized city to Syracuse, Marion said.
Cornell has a PILOT agreement and has paid Ithaca around $4 million annually since 2023. Brown has a 20-year PILOT agreement with Providence of $174.7 million in direct voluntary payments over 20 years, averaging $8.7 million per year. In 2025, Northeastern’s PILOT agreement with the city of Boston increased payments from $1.9 million to $2.6 million a year.
“Each of them have different models in different ways that they have chosen to move forward,” Marion said. “I think, in their own ways, each of them is more generous…. to where they reside, than here in the city of Syracuse.”
Marion said he sent the report to Chancellor Mike Haynie but has not spoken with the university about a new PILOT or other agreement.
