New Tax on Large University Endowments: Impact on Private and State Schools
This act introduces a new 6% tax on the large endowments of certain private colleges and universities, as well as some state-operated institutions. This could affect their financial resources, potentially influencing tuition fees or program availability for students.
Key points
Imposes a 6% excise tax on the fair market value of assets of large private and certain state university endowments.
Applies to institutions with assets exceeding $11.9 billion (private) or $10.5 billion (state), excluding assets used directly for educational purposes.
The changes take effect for tax years beginning after December 31, 2024.
Introduced
Citizen Poll