Tax Exempt Bonds
Some academic buildings were built with tax-exempt municipal bonds, and, because Lipscomb is a Christian school, this led to an extended lawsuit on the basis of whether or not a private religious institution is allowed to use public bonds. This case was debated for many years and ultimately made it to the Supreme Court.
The court upheld the decision of the lower court, that, plainly stated, the government could not withhold public bonds based on Lipscomb's religious affiliation. However, one of the stipulations for receiving public funding was that these buildings cannot have religious classes taught in them. For example, no Bible classes are taught in the McFarland Hall of Sciences; however, the rule about excluding Bible classes does not apply to Ward Hall, even though it is attached to McFarland Hall. Construction of Ward was funded through private donations. This decision has allowed other private, religious universities to pursue public funding for capital projects.
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Famous quotes containing the words tax, exempt and/or bonds:
“The government’s view of the economy could be summed up in a few short phrases: If it moves, tax it. If it keeps moving, regulate it. And if it stops moving, subsidize it.”
—Ronald Reagan (b. 1911)
“To be exempt from the Passions with which others are tormented, is the only pleasing Solitude.”
—Richard Steele (1672–1729)
“It’s rather grisly, isnt it, how soon a living man becomes nothing more than a collection of stocks and bonds and debts and real estate?”
—John Dos Passos (1896–1970)