Obscure tax code interpretation will save UO millions for students

Just kidding, it will save the Ducks millions, and I’m guessing Pres Schill will let AD Rob Mullens spend it on himself and his coaches, as usual.

USA Today has the story here, from Steve Berkowitz:

… The federal tax-law changes passed in December 2017 included the creation of an excise tax on the pay of non-profit organizations’ most highly compensated employees, a levy that targeted any college or university with a coach or athletics director making big money.

… The excise-tax provision was supposed to cover all non-profit organizations, imposing a 21% levy on compensation above $1 million — including bonuses — that goes to any of their five highest-paid employees in a year. …

Private schools and public schools carrying one type of federal tax-exempt status clearly will have to pay. For example, Duke faces a significant tab based just on men’s basketball coach Mike Krzyzewski’s pay, who has made more than $5 million for years, according to the school’s federal tax filings.

Other public schools — including Texas, Texas A&M, Clemson, Oregon, Minnesota and Houston — can claim they will not have to pay because they assert that they are government units that have federal tax immunity without holding any other tax-exempt status.

Bookmark the permalink.

Comments are closed.