California Coast Credit Union has agreed to buy the naming rights to the 4,600-seat Open Air Theatre at San Diego State University pending the approval of the California State University’s Board of Trustees.
The $1.8 billion credit union will pay the university $3.25 million over 10 years under the agreement.
The on-campus amphitheater would be renamed the Cal Coast Credit Union Open Air Theatre starting January 1, 2014.
I have commented on several different occasions that I believe the buying of naming rights by credit unions to arenas and theaters represents a misuse of the credit union federal tax exemption.
Read the story.
Keith, are you still against the buying of naming rights for benefit of a publicly funded institution like a state university?
ReplyDeleteActually, if you paid state taxes on your income that would be even a greater benefit to state universities.
ReplyDeleteSo would Subchapter S banks that do not pay state/federal corporate taxes.
ReplyDeleteSubchapter S banks are taxed as pass through entities. The shareholders pay the taxes on the earnings of the banks even if dividends are not paid. In comparison, credit union members do not pay taxes on the retained earnings of credit unions.
ReplyDelete$3.25MM paid directly to a university seems much better than it going to a bunch of politicians to only give a fraction of that to education. What a crazy time where the ABA has turned into a bunch of pro tax lefties... but that makes sense since they need the taxpayer money to pay for their bailouts.
ReplyDelete