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Tax on college kids proposed

May 23, 2009

Sorry for giving every student and their parents a heart attack. The tax I'm talking about is specific to kids enrolled at some Rhode Island schools.

Providence, R.I., Mayor David Cicilline wants the state to allow cities to assess private colleges $150 per student. Under the mayor's proposal, colleges would have to decide whether to pay the fee or pass it on to students.

This version is a revision of Cicilline's original suggestion. His first draft called for Rhode Island cities to directly levy a $150-per-semester tax on full-time students at private colleges.

The Providence Journal notes that the reason for Cicilline's targeting of college kids is that his city faces a $50 million deficit for the fiscal year that starts July 1.

In addition to the "student impact fee," Cicilline also wants to collect taxes from certain nonprofit institutions, such as hospitals.

The new taxes must be approved by state lawmakers. A state Representative and Senator have agreed to sponsor the measures.

In Providence alone, four private schools — Brown University, Johnson &
Wales University, Providence College and the Rhode Island School of
Design — and five private hospitals would be taxed if the proposals become law.

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It’s over! With October’s extended filing deadline behind us, it is now time to focus on year-end moves to reduce your 2026 tax bill. 

You’ll find ways to do just that on the Tax Tips page (see the More Tax Posts drop-down menu at the top of the blog), as well as the separate tax tip pages for each month, notably October through December. If you’re on the Tax Tips page, you’ll find a monthly list at the end of this column. If you’re on another blog page, you can head straight to the October tips; at the bottom of that tips page you’ll find links to all the other 11 months’ collections of tax advice.

Not to spoil what you’ll find in that tax advice, but it does cover such things as tax deductions for charitable donations, investment moves that could reduce tax due, and ways to max out your tax-favored retirement savings. 

Finally, as the year winds down, things get hectic. There are lots of other things to occupy our time, like the much more fun upcoming holidays. But don’t lose sight of taxes, since timing is key. To be of use, most tax moves must be made by the end of the tax year. That’s Thursday, Dec. 31, which also is the last business day of the year. 

So that you don’t miss that final tax year deadline, also keep an eye on the countdown clock below. It will keep you on top of just how much time is left to make important, tax-saving moves. (Note: I’m in the Central Time Zone, so adjust accordingly for where you live.)

Comments
  • I’ve seen this type of thing happening in other states as well. With the current economy who knows what will happen. Have to come up with money somewhere. Cut education services or raise taxes.

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