Do schools need to pay tax?

Some..it isn't the type of business that makes one tax exempt, it is a list of rules and qualification on how it is run, is funded and handles money...basically that it is run "not for profit". So a school, or a hospital that is a business (like DeVry) run to make a profit like any other business (and in that case can even be invested in on the stock market), is taxed like any other Co. It's product is education.