OUS Tax Exempt Status

 

POLICY

• .100 POLICY STATEMENT
• .110 POLICY RATIONALE
• .120 AUTHORITY
• .130 APPROVAL AND EFFECTIVE DATE OF POLICY
• .140 KNOWLEDGE OF THIS POLICY
• .150 DEFINITIONS
• .160 RESPONSIBILITIES
• .170 POLICY PROVISIONS
• .690 CONTACT INFORMATION
• .695 HISTORY

APPENDIX

• .700 DOCUMENTS
• .995 HISTORY

.100 POLICY STATEMENT 

The Oregon University System (OUS) consists of the Chancellor's Office and the following institutions of higher education: Eastern Oregon University, Oregon Institute of Technology, Southern Oregon University, and Western Oregon University.  OUS exists pursuant to state law and is under the control of the State Board of Higher Education (ORS 352.002).

OUS, as a state institution, generally ^1/ is not subject to taxation under the Internal Revenue Code of 1986, as amended (Code).  OUS is not exempt from tax under Code § 501(c)(3).  Rather, its tax exemption flows from Code § 115 and the rule that federal tax provisions do not apply to integral units of state government unless the Code expressly makes the provisions applicable to state governments.  See State of Michigan v. United States, 40 F3d 817, 823 (6th Cir 1994).

Based on the above discussion, grants and bequests to OUS would not be taxed to OUS.  Moreover, such gifts would constitute "charitable contributions" under Code § 170(c)(1).  Hence, donors of such gifts would be entitled to claim federal income tax deductions, subject to certain limitations, if the gifts are provided in compliance with applicable Code provisions.

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^1/ OUS is subject to federal income taxation on its "unrelated business income."  Code § 511(a)(2)(B).

(One-page statement of OUS's tax exempt status as stated above)

.110  POLICY RATIONALE

OUS seeks to ensure that OUS's tax exempt status is documented, communicated, and clearly understood and applied.

.120  AUTHORITY

• ORS 351.085 - Duties and Powers of Chancellor
• ORS 352.002 - Oregon University System
• OAR 580-040-0005 - Delegation and Assignment of Responsibility
• IMD 6.001 - Finance and Business Affairs Accounting Policies - Assignment of responsibility

.130  APPROVAL AND EFFECTIVE DATE OF POLICY

While OUS's tax exempt status is not new, this policy was approved for the Fiscal Policy Manual by the Vice Chancellor for Finance and Administration on July 1, 2009.

.140  KNOWLEDGE OF THIS POLICY

All Chancellor's Office and institutional personnel with fiscal responsibilities should be knowledgeable of this policy.

.150  DEFINITIONS

None.

.160  RESPONSIBILITIES

The Vice Chancellor for Finance and Administration designates to the Associate Vice Chancellor for Finance and Administration and Controller operational oversight of this policy system wide. This includes all contacts with the Internal Revenue Service (IRS) regarding OUS's tax exempt status.

.170  POLICY PROVISIONS

Documents provided in the appendix of this policy provide support in understanding and proving OUS's tax exempt status. Any documents extending OUS's tax exempt status to specific locals will be provided in the appendix of this policy.

.690  CONTACT INFORMATION

Direct questions about this policy to the following offices:

 

.695  HISTORY

07/01/09 - Approved

Policy Last Updated: 07/01/09

.700 DOCUMENTS

• One-page Statement of OUS's Tax Exempt Status
• IRS General Information Regarding the Tax Treatment of State and Local Governments
• District of Columbia Sales and Use Tax Exemption for OUS

.995 HISTORY

07/01/09 Approved

Appendix Last Updated: 10/20/14