Stanford Faces $43 Million Tab in Trump Endowment Tax
- About 30 wealthy colleges will be affected by the 1.4% levy
- Provision was passed as part of the Republican tax bill in ‘17
Stanford University in Palo Alto, California.
Photographer: David Paul Morris/Bloomberg
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Stanford University faces as much as $43 million in taxes under a new levy on college endowments included in President Donald Trump’s tax overhaul, the first time private colleges will pay such a fee.
The provision, which was passed as part of the Republican tax bill in December 2017, affects about 30 wealthy schools including Stanford -- the third-richest U.S. private college with an endowment of $27.7 billion. The California-based college estimated it will eventually pay the more than $40 million figure on both realized and unrealized capital gains for fiscal 2019, according to an emailed statement from the university.