Tax Break for Colleges
WASHINGTON – The nation's colleges and universities do not have to pay taxes on income generated from specialized credit cards that bear their names, logos or mascots, a federal appeals court has ruled.
The ruling by a three-judge panel of the 9th U.S. Circuit Court of Appeals in San Francisco stems from a case the originated at Oregon State University and the University of Oregon.
Nonprofit alumni associations at the two universities had collected more than $1 million from banks in the state in return for permitting the school's names, seals and logos to be imprinted on credit cards.
The appeals court determined that income was akin to royalties and therefore exempt from taxing requirements. The IRS had sought more than $390,000 in taxes from the two groups.
Tax agency lawyers contended that the alumni groups worked hard to promote the credit cards and therefore the revenue should fall under a category of the federal tax code called "unrelated business," which is taxable.
But the appeals judges ruled that the revenue the credit cards generated for the alumni groups was a result of "their property rights, not… their services." The court noted each group said it performed only 12 hours work in connection with cards – the equivalent of $22,000 an hour had the money generated by the cards actually been payment for that work.

Colleges Dominate Possible Presidential Debate Sites

WASHINGTON – Ten colleges and universities across the country are among the dozen sites that have submitted proposals to host presidential and vice-presidential debates next year, the Commission on Presidential Debates says.
The commission, a nonpartisan, nonprofit organization that was created in 1987 to sponsor general election presidential and vice-presidential debates, will announce its final site selection in January.
Next year's schedule has not yet been finalized, but the commission is considering three debates between the presidential nominees, and one debate between the vice-presidential candidates, says spokesman John Scardino.
"For the university, it is a real chance to put your programs, your faculty and students and campus in a national spotlight," says Deb Pozega, a spokeswoman for one contender, Michigan State University.
Tens of millions of Americans normally tune in to watch the debates. The commission released the potential debate host sites late last month. In addition to Michigan State, they are:
Centre College, Danville, Ky.; the Chamber of Commerce, Charlotte, N.C.; John F. Kennedy Library and the University of Massachusetts, Boston; Shenandoah University, Winchester, Va.; St. Petersburg Times, St. Petersburg, Fla.; the University of California, Los Angeles; University of Portland, Portland, Ore.; the University of Southern California, Los Angeles; the University of Wisconsin, Madison, Wis.; Wake Forest University and Winston-Salem Convention and Visitors Bureau, Winston-Salem, N.C.; and Washington University, St. Louis, Mo.