College Pays Millions in Taxes

Facing public ire after the Florida legislature passed a bill forgiving $3.5 million in back taxes, Pensacola Christian College (PCC) has paid the money it technically no longer owed.

In January, the IRS ruled that the college’s publishing arm was liable for taxes as a profit-making entity. A Beka Books, the country’s largest publisher of Christian textbooks, is responsible for about 60 percent of the college’s income.

Billed for back taxes, the college paid the initial federal tab, estimated at $44.5 million, but sought a waiver on Florida’s corporate tax. When the tax-break legislation went into effect, Gov. Lawton Chiles received hundreds of letters contending the school was receiving a state subsidy.

In an advertisement in the Pensacola News Journal, PCC president and founder Arlin Horton said the school has borrowed money to pay back the taxes to “remove any question as to our Christian responsibility in the matter of back taxes.”

Joel Mullenix, PCC’s vice president for public affairs, says the money was paid “because it appeared some people were going to be offended, and we do not want to be an offense.”

The 22-year-old college halted several construction projects as a result of the unexpected bills, Mullenix says.

Copyright © 1996 Christianity Today. Click for reprint information.

Last Updated: October 10, 1996

Also in this issue

When God Declares War: The Violence of God can only be understood in the shadow of the Cross.

Cover Story

When God Declares War

Cult-Watchers: Cult Watchers Adopt Guidelines

Voucher Opponents Vow to Gut Cleveland Program

Beijing U: China Educators Launch First Religion Department

Why Not Gay Marriage?

Muslim Separatists Sign Peace Accord

Ecuadorian Martyrs Story on Stage

Habitat Builds 50,000th Home

Court Voids Holiday Exemption Law

Call to Renewal: Does Call to Renewal Skirt Partisan Politics?

New Film Lionizes Hustler's Flynt

Pizza, Baptism Don't Always Mix

Grace Note

Learning to Love Israel's God

The Gospel Bassoon

The Possibilities of Imperfection

Why We Worship

News

News Briefs: October 28, 1996

Christian Coalition: Christian Coalition Moves Ahead Despite Political Growing Pains

Congress: Clinton Signs Law Backing Heterosexual Marriage

Churches Fight Overseas Child Labor

Ethics and Business:Holding Corporate America Accountable

Classic & Contemporary Excerpts from October 28, 1996

Elizabeth Dole’s Fishbowl Faith

The Living Bible Reborn: Tyndale's 50th Anniversary

Bill Moyers's National Bible Study

Indiana Jones and the Gospel Parchments

Our Lifeline

Editorial

Why We Still Need Luther

Editorial

Butt Out

Letters

News

News Briefs: October 28, 1996

View issue

Our Latest

News

Northern Seminary Presidential Installation Goes Awry

It’s unclear whether Joy Moore resigned her leadership at the suburban Chicago school.

‘The Chosen Adventures’ Educates Our Smallest Bible Scholars

The animated spinoff on the adult show is a heady attempt to disciple kids on the life of Jesus.

News

How Abortion Pills Change the Fight for Life

Texas pregnancy centers adjust their services as women increasingly access mifepristone by mail.

Review

Suffering Comes in Many Forms. So Does Theodicy.

Scripture attests to God’s distinct plans to wipe individual tears from individual eyes.

The Bulletin

Hamas Crackdown, Rural Hospitals, and Why Brides Wear White

Hamas punishes political enemies, the importance of rural hospitals, and how purity culture influences modern weddings.

Naomi Raine Isn’t Playing Games

The founding member of Maverick City Music is releasing new songs as a solo artist with an impressive roster of guests.

News

Shrinking Palestinian Christian Population Wary of Cease-Fire

“As people, we can live together … because this is what Jesus asked us to do.”

Apple PodcastsDown ArrowDown ArrowDown Arrowarrow_left_altLeft ArrowLeft ArrowRight ArrowRight ArrowRight Arrowarrow_up_altUp ArrowUp ArrowAvailable at Amazoncaret-downCloseCloseEmailEmailExpandExpandExternalExternalFacebookfacebook-squareGiftGiftGooglegoogleGoogle KeephamburgerInstagraminstagram-squareLinkLinklinkedin-squareListenListenListenChristianity TodayCT Creative Studio Logologo_orgMegaphoneMenuMenupausePinterestPlayPlayPocketPodcastRSSRSSSaveSaveSaveSearchSearchsearchSpotifyStitcherTelegramTable of ContentsTable of Contentstwitter-squareWhatsAppXYouTubeYouTube