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Show 4 MONDAY, MARCH THE DAILY UTAH CHRONICLE 6, 2000 IRS May Impose Exclusive Use Tax -- The Internal Revenue Service an integral part of higher education and that corporate support of athletics is not subject to taxation," Ruger said. alerted universities Wednesday that it may begin to tax money k institutions receive from corcompanies or similar porations in exchange for exclusively using their product. According to the proposed regulations, published Wednesday, income received by universities in such deals may be taxable when the income does not pertain to an institution's core mission, or when the company earns a "substantial return bene- have involved the university use d electronic scoreof boards at the SIU Arena, McAn-dreStadium and Softball fields in exchange for the right to sell their products at those venues. According to the language in the contract signed, Marion Pepsi effectively has an exclusive contract until Dec. 17, 2020. Ruger said the vending companies SIU at Carbondale con- SCIARRA RHONDA Daily Egyptian i soft-drin- if lfw ill J,..,.. ' "J I Utah's Regents asked the Utah State Legislature for $13. 5 million for faculty and staff salary increases and received $3.7 million. The U asked for $4.8 million in the original budget request and received $1 million. SALARIES continued from page $6,000 each to hit 90 percent of their market value. Pershing doesn't know how many of these employees will see the selective raises, 1 "Higher education was shorted to a certain extent," Lake. "We worked said Sen. Paula Julander, fund in to committee hard salary equity, but extremely we fell short." In the committee meetings, college presidents acknowledged that they didn't expect the Legislature to fund the Regents' original request of $13.5 million. "We expect we will get less," Salt Lake Community College President Frank Budd said during his budget presentation. As the higher education committee made its final budget recommendations, it indicated that the selective salary raises could take between two and four years to fully fund. for the raises as the first step toward the Utah State Board of Regents' goal of $n million more. She said the Regents' Salary Equity Initiative didn't stick with legislators and suggested altering the title to Market D-S- Adjustments. When the Regents met on Feb. i8, Chairman Charles Johnson made the same suggestion, but with only a few days left in the session, the new terminology didn't have time to take root. faculty members who need a salary level. increase of about $8,000 each to get to the There are 398 staffers in the same position. They need about The U has 307 nt CLONING continued from page 3 babies," said Francis. "People are buy- ing into eugenics and the theory thai you are your genes." Mario Capecchi, a U professor of. genetics, offered the scientific background of cloning. Capecchi said it is important that people debate the consequences of cloning research. "The technology is relatively simple and the efficiency of the procedures involved has greatly improved," said (cute graphic here.) APPLY UNION such as a university, accepts a gift in exchange for simple advertising, the gift is not taxable. But if the donation is in exchange for exclusive usage rights, under the proposed regulations, some of that gift will be taxable. "If the university says at the basketball game the only drink that will be sold is Pepsi, that causes some portion of the payment to be taxable," Varley said. "The IRS is saying that the donation is not a gift." In 1997, former Southern Illinois University President Ted Sanders struck a deal with Marion Pepsi-Col- a Bottling Compa- owner Harry Crisp Jr. pledged $500,000 to a new floor ny, as at the SIU Arena. In turn, Crisp was given a agreement to sell Pepsi products at basketball, football and baseball venues. However, SIU legal counsel Peter Ruger said the revenue SIU athletics has received does 10-ye- ar Before any humans are cloned though, the scientific community needs to address a number of problems, according to CampbelL "I don't know that safety issues have been completely resolved," he said. not constitute unrelated business income that is subject to pPt Fp taxation. tit "There are ample precedents and rulings that say athletics is Pepsi-owne- w non-exclusi- ve k tracts with control which utilize. companies they The proposed regulations would not apply to SlUCarbon-daibut it might to the Edwardsville campus because of an exclusive deal it has with soft-drin- e, Coca-Col- a. A contract for exclusive beverage rights on Carbondale city facilities and property was granted to Marion Pepsi by the City Council last week. The city will earn $500,000 because of the contract. Before the proposals are adopted as final, the IRS will ar consider written comments and electronic responses to the proposed tax regulations. "When the proposal is in the Federal Register, the IRS is asking for comments and feedback from tax practitioners and accountants," said IRS Communications Specialist Bill Rivkin, A public hearing on the regulations is slated for June 21 at IRS Headquarters in Washington, D.C. Written comments may be mailed to Room 5226, IRS, P.O. Box 7604, Ben Franklin Station, Washington, D.C, 20044, and email comments may be sent on the IRS Web site, at ww vj.irs.go vtax regsregs list, html. U Wire ONE LEGEND. ONE STAGE. ONE INCREDIBLE SHOW. S V 240 Capecchi. fit." Doug Varley, an attorney with CapHn and Drysdale in Washington, D.C., said when a charity, Previous contracts with Pepsi wv- - 1$ H ft if If A ri ft U il ! a E. II VI tti) 88 BOY! m t sa mm m MAYBE. 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