Friday, July 5, 2013
From the Chronicle of Philanthropy:
A group of Princeton, N.J., residents has mounted a legal challenge to Princeton University’s tax status, claiming the institution’s income from commercial activities render it ineligible for an exemption, the New York Observer writes.
In arguing that it should be treated as a business for tax purposes, the suit cites the Ivy League university’s revenue from commercial ventures such as theater performances and retail food sales and the $127-million it earned in patent royalties and largely distributed to faculty last year.
A New Jersey tax-court judge last week denied the university’s motion to dismiss the suit, The Times of Trenton reports. A Princeton official said university might reconsider whether some campus buildings should remain tax-free but was confident it would retain its overall exemption.
This sort of lawsuit could be catching.