Looking more closely at a university stand-point, revenue produced from a non-exempt purpose is subject to potential taxation from the unrelated business income. With the formal definition in place, the following will provide a few specific examples of regular activities that universities participate in that may or may not qualify as unrelated business income: A.) University X, an exempt university, has racquet ball courts within a sporting facility along with dressing rooms that are available during the school year and are considered to be part of the universities educational programs. The university also allows the general public to use the facilities for a particular fee. With the facilities on campus, university employees maintain, …show more content…
Since, the organization made available its facilities and personnel to individuals not associated with the institution for the conduct of a summer camp, it is ruled to be engaged in the conduct of an unrelated business. C.) Suppose University Y, an exempt university, has an art museum that provides food from a café for the visitors of the museum. Since there is a place to sit and eat within the museum, the visitors are able to spend a greater amount of time viewing the museums educational exhibits and art collections. With this additional time, visitors are not interrupting their museum experience by traveling to outside eating facilities. With that, the café is a service that contributes importantly to the accomplishment of the exempt purposes and the income produced from the activity is neither an unrelated business income nor taxable. D.) A basketball arena that is located at the center of University Z, an exempt university, allows the general public to use the facility at specific times when neither the women’s nor men’s basketball team needs use of the arena. Moreover, University F also uses the basketball arena to host educational seminars and teach a recreational sports facility management course. Due to the fact that the arena is used in the exempt function of the university – for education purposes – the revenue is not unrelated business income and not taxable ("Unrelated Business Income Tax Detail”).
Filing and Taxation
The belief that new facilities bring in better recruits was tested by the research into the subject. Although new facilities did attract more initial interest from recruits (Schneider, 2012) the final decision about which school to attend came down to other different factors. In the study of “The impact of Athletic Faculties on the Recruitment of Student Athletes” college athletic prospects were asked why they choose the college they did. With factors such as playing time, location, tradition, education, facilities, teammates, and school color to name a few, the results were as follows. Non-Scholarship athletes that had no option to receive finical aid from the school they planned on attending, like the ones in division III, had top five factors of 1) playing time, 2) social life, 3) Education, 4) Location and 5) Financial Aid. Not until after the top ten did weight room and locker rooms came into effect. In another study it was shown that scholarship athletes in Division I were motivated by completion and achievement, while in division III the main motivator to play was the “experience” or the social
The validity of the tax here is related to the benefit Δ receives from access
5. Coordinate gym use for practices and games and give final clearance for the use of either the gym or the athletic field.
Impermissible Inducements and Benefit in violation of NCAA Division I Bylaws 13.2.1, 13.6.6 and 16.11.2.1 (2013-14). On three instances from August 28 to December 19, 2013, the men 's basketball coaching staff arranged for prospects 6 and 7 and student-athlete 1 (while still a prospect) to have access to a
How would they separate the money between these two teams? They could either split it in half but then it would not be fare to the football team or do they give the money all the money the football makes to them. There is also the separation between women's and men's revenue. Oregon's men's basketball made $3,300,000 where as the women's team made $225,000.(University of Oregon Department of Athletics). Title 9 says that the men and the women would have to do the same thing which means they would have to split it equal which also would cut into that money. The splitting of the money would be the major problem with paying college athletes.
C. Obviously some colleges have higher budgets and higher amounts of athletes than others, so how do you make sure you pay each athlete equally while still staying above the budget? You can’t.
* Ordinary income---things that would ordinarily appear to anyone as being a taxable receipt in the hands of the taxpayer. Examples of ordinary income include salary&wages, bank interests, fees for services, commission etc. Statutory income means income that is assessable because the Acts describe it as being assessable. Examples of statutory income include capital gain, Fringe benefit, superannuation, employer termination etc.
are provided to play in and the luxuries they receive in those facilities. In “College Athletes Need
Large privately owned facilities like the campus stadium require a dedicated staff of personnel, rather than a sporadic or incident response team. Therefore, security at the stadium during games can be best provided by the private sector. The public law enforcement agencies in the community can and should be alerted as to when games are being attended so that they can provide back-up support or ancillary services when required.
The plaintiff’s argument to why the third condition did not meet stated that on previous occasions Foster High School charged the public to hold events on the property. Therefore, the plaintiff states that because the school district has charged the public before to use the recreational space that it is not immune from the liability on the injury on the property.
in Miller). These bylaws are meant to protect the young athletes from exploitation, professionally and commercially, in the real world. Although, nowadays, intercollegiate athletics produce enormous profit for their schools, and the players still do not receive any of it, except through scholarships (Schneiders 232). According to Byers, athletes also cannot “be paid for any work with private sports camps related to their sport” (qtd. in Miller). To bind the athletes to these standards, a player must sign an N.C.A.A. student athlete form before ever becoming an official student-athlete. This form guarantees to the N.C.A.A. that their athletes have had the opportunity to read and understand the new rules that govern collegiate sports, versus the leniency of high school. Despite the strict approach, the association does take the financial need of their players into consideration by allowing schools to include room, board, and tuition in the money they are allowed to grant (Miller).
Although the petitioner, UTA cited primarily subsection (L) of the recreational statute as a catch all, the court found it is not intended to protect school organized sports just because they occur outdoors. The intent is for activities commonly associated with the enjoyment of nature while outdoors on private property. This encourages private owners to allow citizens on their land for the purposes of recreational activities like fishing, camping, canoeing or bicycling. This provides a level of immunity for the landowner to encourage them to allow use of their property by protecting them from ordinary negligence claims associated with recreational
My plan to support my argument, on why the money should be used towards athletics is the money will be used to create another building on campus which will be considered an Athlete only, Academic building. The building will
The second interesting fact that was presented today is also based on the financial aspect of renovation and building new sports facilities on UF’s campus. In Mr. Howard’s presentation, he mentioned that the UAA is planning to build a new football facility and cafeteria that will benefit all UF student-athletes. Mr. Howard stated that to build a new facility from the ground up with state-of-the-art amenities, it would cost the UAA around $60 million dollars, just for this project alone. Mr. Howard explained that to finance this project and the many others, the UAA has planned that they will take out a loan, use some capital within the reserve, and
Aspen Falls is a small town with several athletic opportunities available to the public. They extend various facilities to its residents which range from a Recreation Center to its own Soccer Field as well as a local pool and a lake. The spreadsheet below shows the different facilities available and the equipment accessible to the patrons. It is meaningful because it offers the city workers important inventory information. Yet, it also allows the citizens to see where their tax dollars are going. As well as what is available to the clientele when they visit said facilities.