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Stanford surpasses Getty Museum as largest recipient of property tax exemptions in California

Original post made on Dec 19, 2022

Stanford is the largest recipient of property tax exemptions in California. It received more than $16.8 billion in exemptions last year.

Read the full story here Web Link posted Monday, December 19, 2022, 9:20 AM

Comments (28)

Posted by Citizen
a resident of College Terrace
on Dec 19, 2022 at 10:47 am

Citizen is a registered user.

Thought the City wanted affordable housing for those who worked at Stanford - and now they're objecting to Stanford providing that for it's faculty? Interesting.


Posted by Marc Jensen
a resident of Atherton
on Dec 19, 2022 at 10:58 am

Marc Jensen is a registered user.

It's called good business practice on the part of Stanford University.

Tax avoidance (legal) and tax evasion (illegal) are two different things.

Nearly everyone in their right mind chooses to avoid paying additional or any unnecessary taxes.


Posted by Interested Reader
a resident of Old Palo Alto
on Dec 19, 2022 at 10:58 am

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Affordable housing for hourly workers is not the same as housing for professors.


Posted by AGMidtown
a resident of Midtown
on Dec 19, 2022 at 11:02 am

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I can understand the argument for houses that Stanford purchases outside of Stanford-owned land and then resells to faculty below market value. Stanford should compensate their professors enough to handle the taxes at regularly assessed value; it's just part of the cost of living and employing here, and it's much smaller than the article's 16 billion total. The city should get fair compensation for services it provides. But it sounds like Palo Alto wants to go well beyond that, and that's just a plain money grab.


Posted by Online Name
a resident of Embarcadero Oaks/Leland
on Dec 19, 2022 at 11:26 am

Online Name is a registered user.

I added up how many housing units Stanford is contributing to the PA community based on PAO reports and subtracted the 795 Oak Creek apartments it just removed and came up with 114 units BEFORE counting the number of homes Stanford bought up in Coillkege Terrace and elsewhere.

Given Stanford's never-ending expansion, that's pathetic given that the populations of Stanford U, Stanford Hospital and Palo Alto are practically identical.

Speaking of Stanford Medical, Stanford's so greedy they won't even staff their own hoispital adequately thus endangering patients and the nurses. A friend who was on the negotiating team to settle the strike was horrified that not one Stanford rep had any awareness of what their jobs were or ANY experience with medicine or health care! Just greedy bean-counters. Shameful and dangerous.


Posted by resident3
a resident of Another Palo Alto neighborhood
on Dec 19, 2022 at 11:38 am

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@AGMidtown,

"The city should get fair compensation for services it provides."

Just to be clear, services are not infrastructure. I would hope that Stanford can figure that out.

It's o-b-s-c-e-n-e that these tax breaks go out PER YEAR in CA which talks life as if it's Switzerland, with transportation infrastructure that is dismal, pathetic, fill in the blank.. where everyone needs a car and where the buses only take dollar bills. Caltrain can't even master signage, has anyone around here ever tried to get around on train or a bus? Or is the Tesla enough goodwill.




Posted by Jennifer
a resident of another community
on Dec 19, 2022 at 12:49 pm

Jennifer is a registered user.

The key to happiness (in any city) is to tune out local politics. Especially in "certain" cities. You should be able to be community minded without crushing your soul. When it leads to addiction to politics, it's even sadder. It's to the detriment of your own well-being.


Posted by resident3
a resident of Another Palo Alto neighborhood
on Dec 19, 2022 at 1:04 pm

resident3 is a registered user.

@Jennifer,

"The key to happiness (in any city) is to tune out local politics."

This article is also about state politics. Since you've indicated you moved out of Palo Alto, does your city have as much politics as Palo Alto?


Posted by Online Name
a resident of Embarcadero Oaks/Leland
on Dec 19, 2022 at 1:13 pm

Online Name is a registered user.

"The key to happiness (in any city) is to tune out local politics. Especially in "certain" cities."

The key to happiness re local politics is to have responsive city staff and elected officials who are represent the community they're supposed to be serving, not their own interests and future political ambitions. They're supposed to be "minding the store" and ensuring OUR money is well-spent because they know the "buck stops" with them -- in the OLD sense of the phrase.


Posted by Jennifer
a resident of another community
on Dec 19, 2022 at 1:17 pm

Jennifer is a registered user.

resident3 - No, our city is about the same size as PA (60,000 plus), but it's not political at all compared to PA. We are PA taxpayers/homeowners.

My point was PA is a very nice city, but the dominance of Stanford creates oppression to some residents, and it doesn't have to be. Let the city leaders/elected officials deal with the politics and enjoy your life personally/professionally without letting politics destroy your mental well-being. Voting is important but getting all "caught up" is to the detriment of your happiness.


Posted by Annette
a resident of College Terrace
on Dec 19, 2022 at 1:24 pm

Annette is a registered user.

I think Jennifer is right. Local politics is crazy-making b/c ridiculous stuff goes on and there’s pretty much nothing residents can do. The answer should be “but you can vote” but somewhere along the way, CC relinquished control of the City to the City Manager and we do not vote for the City Manager. This broken dynamic is getting increasingly problematic and expensive.

CC: take back your control!


Posted by resident3
a resident of Another Palo Alto neighborhood
on Dec 19, 2022 at 1:39 pm

resident3 is a registered user.

@Online name,

"They're supposed to be "minding the store"

I agree, and unfortunately the "store" is tied to our wallets. So, who knew that half of Palo Alto's property owners like Jennifer aren't here. The happiness score for distant landlords must be off the charts, rising property prices, no politics, no need to upgrade much and also some extra cash on the side if you do AirBnb or VRBO.


Posted by Nayeli
a resident of Midtown
on Dec 19, 2022 at 2:47 pm

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Stanford is a UNIVERSITY that does enormous public benefit. Good for them!


Posted by Online Name
a resident of Embarcadero Oaks/Leland
on Dec 19, 2022 at 4:07 pm

Online Name is a registered user.

Yes, Stanford is a UNIVERSITY but like university towns all over the country, the towns in which they're located are suffering although few are growing as rapidly or as well-endowed as Stanford (which hasn't made them more public-spirited.)

Check out what's happening in towns like Princeton, NJ. But even Princeton's not expanding into other counties and other surrounding towns.


Posted by felix
a resident of Another Palo Alto neighborhood
on Dec 19, 2022 at 10:59 pm

felix is a registered user.

Stanford, you are acting like a little jerk for not paying the full impacts of your development, whether in taxes, for housing, schools, city services, infrastructure, transportation, etc.

Grow up, you’re acting like the entitled elitist institution you are. Time to stop sponging off the town folk and start paying your own way.


Posted by property tax
a resident of Midtown
on Dec 21, 2022 at 11:33 pm

property tax is a registered user.

16.8 billion is 168 million in property taxes each and every year. 45% of property taxes funds PAUSD - $75 million per year if there were no exemption. instead, the palo alto and los altos hills property owners make up for this by paying an additional parcel tax.

8% of property taxes goes to the city - 13.4 million if there were no exemption. instead the palo alto residents pay either through service reductions (hours libraries are open, etc).

Stanford doesn't need to plead poverty either with a 27+ billion endowment, income from Stanford Research Park, Stanford Shopping Center, and administor salaries well into the $300,000 - $1,000,000 range.

So I do think it's time for Stanford to pay it's fair share.


Posted by PA Female Resident
a resident of College Terrace
on Dec 27, 2022 at 8:27 pm

PA Female Resident is a registered user.

Maybe this is partly a federal issue -- of looking at what types of organisations should be tax-exempt (or tax-reduced?)
Web Link


Posted by panative
a resident of Midtown
on Dec 31, 2022 at 10:18 am

panative is a registered user.

It's maddening to read this. I don't often agree with Lydia Kou but her proposal to charge Stanford more for services sounds right, especially if it's a vetted model used by other communities with an extremely wealthy university in their midst.


Posted by Online Name
a resident of Embarcadero Oaks/Leland
on Dec 31, 2022 at 11:59 am

Online Name is a registered user.

Good for Vice Mayor Lydia Kou. Remember that we -- the resident taxpayers are -- subsidizing Stanford's refusal to pay / do its fair share in the form of constantly rising utility rates funneled into the General Fund while we're STILL awaiting the restoration of pre-pandemic services like at our libraries.


Posted by PalyJim
a resident of Old Palo Alto
on Dec 31, 2022 at 12:22 pm

PalyJim is a registered user.

Palo Alto leaders have a short memory. As a native Palo Altan, the city has gained its stature and importance as a result of Stanford's global accomplishments and contribution. Business and tax revenues have benefited from Stanford's success, and now Palo Alto wants more. Start helping small retail business back to downtown and Calif. Ave. instead of offering incentives to start-up office spaces that contribute nothing to the city.


Posted by resident3
a resident of Another Palo Alto neighborhood
on Dec 31, 2022 at 4:49 pm

resident3 is a registered user.

@PalyJim,

“As a native Palo Altan, the city has gained its stature and importance as a result of Stanford's global accomplishments and contribution.”

The main driver for growth have been jobs; Stanford isn’t the only employer nor is Palo Alto the only city to choose from, but if there’s a standout reason the City has attracted people to plunk millions for small cabins, it’s because of K-12 Palo Alto schools. People with a longer term commitment to the City.

Offices, and the transient office and start up population are a completely different crowd, I don’t think they even shop here. Oh wait, maybe only food. Does Stanford really help? I think it mostly attracts the temporary population.


Posted by PalyJim
a resident of Old Palo Alto
on Jan 1, 2023 at 10:38 am

PalyJim is a registered user.

@resident3,
Thank you for your comments; I do not agree that Stanford has some kind of enduring obligation to Palo Alto's economy, rather one of coexistence whose agreements already exist. From my observation, a significant group of people "schooled" in Palo Alto choose to remain, but that is not the primary purpose of a quality education. Without Stanford, Palo Alto is really just another wealthy small city on the Peninsula, thus inappropriate to seek new ways to exploit our relationship with the University.


Posted by resident3
a resident of Another Palo Alto neighborhood
on Jan 1, 2023 at 11:46 am

resident3 is a registered user.

@Paly Jim,

“I do not agree that Stanford has some kind of enduring obligation to Palo Alto's economy, rather one of coexistence whose agreements already exist….. inappropriate to seek new ways to exploit our relationship with the University.”

What I saw on Palo Alto’s list of demands for coexistence are about planning for infrastructure, transportation, and issues tied to Stanford’s growth. Not about growing Palo Alto’s coffers or to exploit. If there’s no planned growth for Stanford, regionally or for the state, no need to plan that much. Is Stanford committing to not growing?


Posted by Consider Your Options.
a resident of Another Palo Alto neighborhood
on Jan 6, 2023 at 11:34 am

Consider Your Options. is a registered user.

With a growing Stanford, Palo Alto is a small city on the Peninsula whose citizens have to carry the cost burden of providing them with enormously expensive local infrastructure and services their growth demands if they will not. This needs to be a symbiotic relationship, and planning for this growth requires good faith negotiation. Stanford, in recent years, has taken a dismissive and confrontational approach to the community--perhaps that is because they are expanding facilities in other communities who are also asking for mitigations and their resources are stretched. I wonder if they may have overreached, and so they want us to foot the bill for their local growth needs. (Dear friends in San Jose and Redwood City and elsewhere, take notice of this behavior. Your new neighbor will do the same to you.) Stanford, you undermine your brand and your relationships with this behavior. Reach out to problem solve with your neighbors. Your confrontational posturing is making former community partners frustrated and angry. That is no way to start any negotiation.


Posted by Duveneck neighbor
a resident of Duveneck/St. Francis
on Jan 7, 2023 at 12:06 pm

Duveneck neighbor is a registered user.

This article is filled with falsehoods, dis- and mis-information.

Every university town has a town-gown 'problem'. It has ever been thus. The comments, above, seem to indicate the commenters don't understand this evolution.

Stanford and the political/government neighbors re-negotiate a new general use plan, on a more or less regular period. Tom DuBois should know this. The reporter should know this (but apparently, either nether of them know this -- or, they are being disingenuous for the purpose of 'positioning', and influencing public opinion through a fake narrative, in preparation for the next set of negotiations).

Former Stanford President John Hennessy, shortly after passing the reins to the new President, expressed relief and satisfaction that he would not have to lead the next general use plan negotiation. Implication: it is one of the biggest, most difficult, parts of the Stanford President's job.

In other town-gown situations, *any* property owned by the university, which generates income, is subject to tax. Dormitories fall under this category. Sports venues which charge admission. Faculty and staff housing which is either rented, or in some manner subsidized.

Santa Clara County's Assessor is responsible for assessing property taxes on leased Stanford lands, and on structures erected upon Stanford lands. See: Web Link

This article is one-sided and incomplete. The reporter should do a better job of explaining the context. If one googles {does stanford pay property tax?}, one will find an article last September, wherein Stanford is reported to be seeking additional property tax exemptions. This article, in that context, is a sort of 'rebuttal' by Palo Alto.

IMO, the Stanford Daily has done a better job of objective reporting. See, for instance: Web Link

It's all about posturing and positioning.


Posted by Anonymous
a resident of Duveneck/St. Francis
on Jan 8, 2023 at 6:08 pm

Anonymous is a registered user.

I think Stanford should contribute to pay their impact on local community ESPECIALLY to PAUSD, our local K-12 public school district.
I regret that they purchase local single family homes outside of their campus, competing with the public.
Stanford has one of the largest university endowments in the world. Please work with us, Stanford
- from a highly taxed PA taxpayer


Posted by Crescent Park Rez
a resident of Crescent Park
on Jan 11, 2023 at 10:21 am

Crescent Park Rez is a registered user.

I'll go along with taxing universities only when the government starts taxing churches. Only in one of the wealthiest communities in the US are people complaining that a neighboring university that provides open space for hiking, access to art, culture and sporting events, programs and events of every sort, a continuing education program and more is not paying their fair share. It's so shockingly myopic it's just unbelievable.


Posted by community member
a resident of University South
on Jan 17, 2023 at 6:36 pm

community member is a registered user.

Stanford was recently described as a land-use developer and financial accumulator, ($37+ BILLION dollar endowment) with a university as a side business.

That description is more and more true.


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