Back to the North Carolina Tar Heels Newsfeed

Senate tax bill includes tax on college logo royalties | News & Observer

Related Topics: Royalties

The money generated by all your Tar Heel, Wolfpack and Blue Devil hats, shirts and coffee mugs funds scholarships for students at your favorite university.

Now Senate Republicans want some of that money to help pay for tax reform.

Ordinarily, nonprofits don’t pay federal taxes on their income – and that includes most colleges. But under the Senate’s tax bill, royalties generated by nonprofits based on their names and logos will be taxed. It could be a large hit to universities with popular athletic departments that generate lots of money through merchandise sales — like the Triangle’s ACC schools.