SU’s Schine Student Center remains tax-exempt after NY Supreme Court ruling
New York state’s Supreme Court reversed a lower court decision on June 5 that declared SU’s Schine Student Center as untaxable despite the commercial businesses inside. The ruling ends a five-year debate between SU and the city. Tara Deluca | Photo Editor
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Rochester’s Fourth Appellate Division ruled on June 5 that Syracuse University’s Schine Student Center will remain tax exempt, Central Current reported.
The ruling reverses a lower court decision in favor of the city of Syracuse. It also ends a five-year debate over whether the commercial businesses inside of Schine make the building taxable.
The city argued Schine should be partially taxable because it hosts franchises including Panda Express, Dunkin’ and CoreLife. The city consequently viewed Schine as a partially revenue-generating business.
SU countered that the businesses within Schine provide services to students and therefore qualify for exemption under New York state law RPTL 420-a (1) (a). The law says educational property that “continues to be used exclusively for educational purposes” qualifies for a tax exemption.
The appeals court agreed with the university that Schine is used to further the education of SU students, making it eligible for the exemption.
“We appreciate today’s ruling,” SU spokesperson Sarah Scalese told Central Current about last Friday’s decision.
The dispute began in 2021 when the Department of Assessment determined portions of Schine’s renovations were not exempt from city taxes, Central Current reported. After the city’s assessment review was upheld, SU filed suit in 2022. In 2025, Judge Gerald Neri ruled in favor of the city, leading the university to appeal.
Common Council member Corey Williams told Central Current that the city will continue fighting to tax a portion of Schine.
“We are disappointed about the decision and I hope that we exhaust every opportunity to appeal the decision,” Williams told Central Current on Friday.
