October 15, 1999

Appeals Court Says Colleges Don't Owe Taxes on 'Affinity' Credit Cards

By PATRICK HEALY

Colleges do not owe taxes on revenue generated from "affinity" credit cards that they co-sponsor, a U.S. appeals court ruled last week.

The decision was the first by a federal appeals panel on the tax treatment of income from affinity cards, which generate tens or hundreds of thousands of dollars a year for the many colleges that help offer them with banks and businesses.

At issue was a total of $1.1-million that the non-profit alumni associations at

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