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November 12, 2012

Foundation's Commercial Revenue Not Taxable, Ala. Judge Says

The University of Alabama in Huntsville Foundation won a court ruling Friday that its income from an ownership share in a Coca-Cola distributorship is not subject to state taxes, The Huntsville Times reports. A Madison County Circuit Court judge granted the foundation summary judgment in its challenge to the Alabama Department of Revenue, which sought to collect payments on revenue it said was unrelated to the organization's nonprofit mission.

The foundation had a 19.5-percent stake in Chambers Bottling Co., donated by the John L. Chambers Trust. It paid federal taxes on the income but cited in its case a state law that exempts the foundation and about 20 other nonprofit groups from "any and all state, county, and municipal taxes, licenses, fees, and charges of any nature whatsoever."