Land Use & Zoning

In Pennsylvania's State College area (Centre County), which university-related land use principle may affect local zoning and real estate values?

AUniversity-owned land is taxable at full rate in Pennsylvania
BLarge tax-exempt university ownership reduces the local tax base, concentrating tax burden on nearby private property owners✓ Correct
CPenn State owns all surrounding commercial properties by state law
DUniversity towns are always exempt from Pennsylvania zoning requirements

Explanation

Tax-exempt institutions (universities, hospitals, nonprofits) in Pennsylvania reduce the tax base available to support municipal services. Concentrated tax-exempt ownership in places like State College means higher tax burdens on surrounding private property owners, affecting investment returns and affordability in those markets.

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