In a letter to Rep. John Katko (R-N.Y.) last week, Syracuse University Chancellor Kent Syverud expressed concerns about provisions of the recently passed House of Representatives tax bill that would impact higher education.

The tax plan, which would dramatically increase the cost of university attendance for certain groups and eliminate tax deductions on premium seating at collegiate athletic events, was passed by the House on Nov. 16. Katko voted in favor of the bill.

Syverud said he was concerned by:

• The reduction in tuition tax credits
• The elimination of a tax exemption for tuition waivers
• The taxation of employer-provided tuition payments
• The repeal of the Student Loan Interest Deduction
• Taxes on endowment income
• The elimination of tax deductions for premium seating at athletic events

“These provisions may harm current and future students, and undermine the financial stability (of) our nation’s public and private colleges and universities,” Syverud said.

The letter, dated Nov. 20, was published in a campus-wide email sent Wednesday by Vice Chancellor and Provost Michele Wheatly and Peter Vanable, associate provost for graduate studies and the Graduate School’s dean.

The elimination of the tuition waiver tax exemption could cause the cost of attendance for some students to skyrocket.

Currently, universities can waive tuition costs for Ph.D. and master’s students who do research or teach classes. In the House’s plan, the waived tuition fees would be considered taxable income.

Syverud said 875 graduate students at SU receive tuition waivers. The university fears those students will be forced out of higher education if the House bill is implemented, he added.

Employer-provided tuition payments, currently tax exempt, would also be considered taxable income under the House bill. SU employees and their children who are attending the university can apply for a tuition waiver. The value of that tuition waiver would be taxed under the House’s plan.

More than 2,000 central New York families and their 3,500 children have taken advantage of the tax exemption to attend SU in the last five years, Syverud said.

The chancellor also said he was concerned about the potential repeal of the Student Loan Interest Deduction, a small tax break for people with student loan debt. About 60 percent of SU students have taken out loans, Syverud said. The tax break saves those with debt up to $2,500 a year.

Syverud said the House bill would “significantly and negatively impact” SU Athletics’ economic benefits in central New York.  

A tax deduction on premium seating at collegiate athletic events, which people can write off as a charitable contribution, would be eliminated under the House bill. Syverud said premium seating plays a significant role in supporting investments in athletic infrastructure, scholarships and student programs.

The elimination of the tax deduction on premium seating could have an impact on the planned Carrier Dome renovations, the chancellor wrote. Premium seating is included in the economic model that supports the renovation plans, he added.

The bill would also add a tax on licensing and trademark revenue generated by the SU Athletics brand.

Wheatly and Vanable, in the email, said the university would work with elected representatives in the Graduate Student Organization to advocate on behalf of graduate students.

The Senate is expected to vote on their version of the tax plan before Christmas. The Senate’s plan does not include some of the House bill’s provisions, such as the elimination of the tuition waiver tax exemption.

Published on November 29, 2017 at 9:59 pm

Contact Jordan: jmulle01@syr.edu | @jordanmuller18