Tuesday, July 09, 2013

HAS PRINCETON UNIVERSITY BECOME A TAXABLE ENTITY?

A recent article indicates that residents of Princeton, New Jersey have filed suit against the university, claiming that the university’s commercial ventures have disqualified it from its tax exempt status, and thus it should pay its fair share of local taxes. It is not clear what local taxes are sought (i.e., income, ad valorem property taxes, or others).

The commercial activities of the university include theatre performances, retail food outlets, health services, and patent licensing profits.

Depending on the particular provisions of local law, if this suit is successful it may spawn similar lawsuits against other schools that conduct similar commercial activities.

The article can be read here.

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