Tax Targeting Elite Private Universities Will Cost 2 Philly Area Colleges Millions
PHILADELPHIA (CBS) -- The new federal tax bill charges a levy on college and university endowments. The provision went back and forth until just about 30 colleges in the country will have to pay but at least two of them are in the Philadelphia area.
Swarthmore College and Bryn Mawr College will have to pay a 1.4 percent tax on their endowments beginning next year because of a provision targeting elite private colleges and universities.
An analysis by the Chronicle of Higher Education finds Swarthmore's $1.9 billion endowment comes out to more than a million dollars per student, while Bryn Mawr's $839 million fund equates to $519,000 per student.
The new tax is levied on endowments that equal more than half a million dollars per student.
The analysis shows Penn and Haverford College just under the limit, but the figures change year to year. Penn's spokesman Ron Ozio says, like other higher ed institutions, Penn will be studying how the government plans to implement the tax.
Bryn Mawr's spokesman says it view the tax as harmful to students and will work with elected officials toward its repeal.
Swarthmore declined comment.