Op-Ed: On Its Centennial, It’s Time for Duke University to Strengthen Its Partnership With Durham Through Direct Payments in Lieu of Taxes
Duke University and Duke University Health System can ensure that the tax burden is more fairly distributed and more people in our city share in our growing prosperity.
Duke University's West Campus. Credit: Jeremy M. Lange
This year, Duke University is celebrating its centennial—100 years since its founding as a university here in the Bull City. During the past century, Duke has grown into one of the most prestigious universities in the world, with top-notch research, highly selective admissions, a world-class hospital system, and a multi-billion-dollar endowment.
The campus footprint has grown as well, making Duke the city’s largest and wealthiest private landowner. As it has grown, Durham, too, has grown and evolved into an economically diverse, midsized city. Over the decades, alongside positive changes, many of Durham’s poor and working-class communities have felt the impacts of redlining, underinvestment, gentrification, and displacement. Today, Durham finds itself at a crossroads: We are a prosperous city, but one where growing wealth is lopsided, helping some residents while harming others.
At the cornerstone of this reality is Duke University, which is currently tax-exempt and pays taxes on only a small portion of its properties, while benefiting handsomely from the amenities, services, and opportunities provided by the city that surrounds it. After 100 years, it is time for Duke University and the Duke University Health System to begin making annual payments in lieu of property taxes to the City of Durham and Durham County.
It is true that Duke has its own community programs, and the university should continue those programs as a good neighbor and partner to the city. However, residents and small businesses across Durham contribute their time, resources, and energy to the community and pay their fair share in taxes. We function together as a society because we pool our resources and make collective democratic decisions through our local government.
Duke University and Duke University Health System can ensure that the tax burden is more fairly distributed and more people in our city share in our growing prosperity. These institutions have an opportunity to commit to making up the revenue that is lost from their tax-exempt properties. This would transform Durham for years to come by providing millions of dollars to support crucial city and county services like city worker wages, schools, community health and safety, affordable housing, relief for low-income homeowners, infrastructure, and other vital services.
On its 100-year anniversary, Duke University should sit down in good faith with local government officials and a broad and growing community coalition and make a serious financial commitment that will offer opportunity, safety, and dignity to our residents.
In beginning to make payments, Duke would join its peer institutions, such as Yale, University of Pennsylvania, Cornell, Princeton, Dartmouth, Brown, and others, who have already deepened their partnership with their respective communities by making significant payments in lieu of taxes. This would go far to ensuring that Duke pays its fair share like all of the residents and small businesses in our community.
Nate Baker is an at-large member of the Durham City Council.
Op-Ed: On Its Centennial, It’s Time for Duke University to Strengthen Its Partnership With Durham Through Direct Payments in Lieu of Taxes
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This year, Duke University is celebrating its centennial—100 years since its founding as a university here in the Bull City. During the past century, Duke has grown into one of the most prestigious universities in the world, with top-notch research, highly selective admissions, a world-class hospital system, and a multi-billion-dollar endowment.
The campus footprint has grown as well, making Duke the city’s largest and wealthiest private landowner. As it has grown, Durham, too, has grown and evolved into an economically diverse, midsized city. Over the decades, alongside positive changes, many of Durham’s poor and working-class communities have felt the impacts of redlining, underinvestment, gentrification, and displacement. Today, Durham finds itself at a crossroads: We are a prosperous city, but one where growing wealth is lopsided, helping some residents while harming others.
At the cornerstone of this reality is Duke University, which is currently tax-exempt and pays taxes on only a small portion of its properties, while benefiting handsomely from the amenities, services, and opportunities provided by the city that surrounds it. After 100 years, it is time for Duke University and the Duke University Health System to begin making annual payments in lieu of property taxes to the City of Durham and Durham County.
It is true that Duke has its own community programs, and the university should continue those programs as a good neighbor and partner to the city. However, residents and small businesses across Durham contribute their time, resources, and energy to the community and pay their fair share in taxes. We function together as a society because we pool our resources and make collective democratic decisions through our local government.
Duke University and Duke University Health System can ensure that the tax burden is more fairly distributed and more people in our city share in our growing prosperity. These institutions have an opportunity to commit to making up the revenue that is lost from their tax-exempt properties. This would transform Durham for years to come by providing millions of dollars to support crucial city and county services like city worker wages, schools, community health and safety, affordable housing, relief for low-income homeowners, infrastructure, and other vital services.
On its 100-year anniversary, Duke University should sit down in good faith with local government officials and a broad and growing community coalition and make a serious financial commitment that will offer opportunity, safety, and dignity to our residents.
In beginning to make payments, Duke would join its peer institutions, such as Yale, University of Pennsylvania, Cornell, Princeton, Dartmouth, Brown, and others, who have already deepened their partnership with their respective communities by making significant payments in lieu of taxes. This would go far to ensuring that Duke pays its fair share like all of the residents and small businesses in our
community.
Nate Baker is an at-large member of the Durham City Council.
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