- 15 - Respondent is especially concerned about preventing the University from circumventing the Supreme Court’s 1983 decision in Bob Jones Univ. v. United States, 461 U.S. 574 (1983). Respondent contends that, if petitioner prevails, “Bob Jones University will be able effectively to achieve the tax exempt status which was denied to it by the Supreme Court.” By spinning off component parts, respondent states, the University “may achieve an aura of tax-exempt status itself by being associated with various tax-exempt spin-offs.” Respondent further contends that a decision for petitioner would create a “slippery slope”. She believes that if the University is allowed to spin off its museum, it may next attempt to spin off other component parts, such as its library, cafeteria, and bookstore. Respondent’s concerns about spinoffs are misplaced for several reasons. First, as petitioner aptly points out, respondent does not cite any cases to support her “aura” argument, nor does she clearly define this exempt status- defeating “aura”. Second, libraries, cafeterias, and bookstores are essential parts of a university, while most universities do not maintain art museums. Third, a cafeteria or bookstore spun off from a taxable corporation might not independently qualify for exempt status. Finally, while additional concerns may arise if a university were to attempt to spin off one of its essential parts, those concerns are not implicated here.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Next
Last modified: May 25, 2011