The phrase "scholarship tax" refers to a tax on the money or financial aid given to students as scholarships or grants. It could mean that a certain portion of the scholarship amount would be subject to taxation by the government. Full definition
More than half of those students are participating in scholarship tax credit programs. (cato.org)
Supporters of scholarship tax credits say they save the state money because annual tuition at a private school is typically less than the per - pupil cost at public schools. (ncsl.org)
A consensus is developing that the quickest and most effective route to a school - choice victory for all fifty states is a federal scholarship tax credit. (educationnext.org)