New tax bill requires University to pay taxes on investment earnings
Observer Staff Report | Tuesday, January 23, 2018
Under the new federal tax bill, Notre Dame will be required to pay taxes on investment earnings, according to a South Bend Tribune article published Dec. 20.
The article said the new bill, which requires certain private colleges to pay a 1.4 percent annual tax on investment earnings, “could cost the University up to $9 million per year.”
This stipulation, the article said, applies to private colleges that enroll more than 500 students with at least $500,000 in endowment per student. According to the article, an analysis by the Chronicle of Higher Education concluded that the provision would apply to about 27 institutions.
University spokesperson Paul Browne said in the article that the measure would most likely cost the University $6 million to $9 million per year.
According to the article, “Notre Dame would be the only university in Indiana to face a tax on its investment earnings under the federal bill.”