This college town in the US wants to levy a special tax on university students

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Key Points

In a move that has stirred debate within the community, the Newark City Council is considering imposing a per-student, per-semester tax of up to $50 on the University of Delaware (UD)..

The council is hoping the move helps to alleviate the city's projected $8 million revenue gap in 2025...

According to a reports, UD President Dennis Assanis has attributed the university's financial challenges to inflated employee health-care costs, leading to a hiring freeze and the contemplation of additional budgetary measures..

However, local officials argue that the university, being exempt from property taxes, should contribute to the city's rising operational costs...

Opposition to the proposed tax have come from students and administrators who argue that the university already significantly contributes to Newark's economy..