Budget & Taxes (Sales Tax)

This bill increases the excise tax on investment income earned by private colleges and universities from 1.4% to 10%. It also lowers the asset threshold requiring taxation from $500,000 to $200,000 per student, meaning more institutions will now be subject to the tax. The tax applies only to investment income, not the full endowment value, and affects private colleges meeting the new per-student asset threshold. The changes take effect for taxable years after the bill's enactment.