Proposed federal endowment tax to affect College
On June 28, the U.S. Treasury Department proposed rules for the excise tax on endowments on certain colleges and universities that was passed as part of the Tax Cuts and Jobs Act in late 2017. The 58-page document clarified certain aspects of the policy to aid administrators in determining whether the tax applies to their institution and how much colleges owe. The 1.4 percent tax applies to private colleges and universities with at least 500 students and endowments worth at least $500,000 per student. Dartmouth’s over 6,000 students and more than $5 billion endowment puts it safely in this range, according to the College’s chief financial officer Mike Wagner, making it one of the 25-40 institutions the Internal Revenue Service expects to be affected by the tax.
