A New Jersey judge has refused to dismiss a suit by residents of Princeton, N.J., challenging the tax-exempt status of much property at Princeton University, The Times of Trenton reported. Like challenges to the tax-exempt status of college and university facilities elsewhere, the suit argues that some facilities are used for purposes removed from Princeton's educational missions. But the novel argument (disputed by the university) in the suit is that because of Princeton's extensive activities with patent royalty income -- and the sharing of that income with faculty members -- Princeton has become a commercial enterprise, and thus should pay taxes.
- Brown dispute questions what's a fair payment in lieu of taxes
- More Scrutiny for Colleges' Business Practices
- Congress should end tax breaks for wealthy universities (essay)
- All That Money -- What Next?
- Commercial and Tax-Free
- Universities Get Relief on Bond Rules
- Ball's in the NCAA's Court
- To lure research and avoid regulations, some universities turn away from tax-exempt bonds
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