Thank you to everyone who has weighed in on the provision in the Senate bill to tax associations’ royalty income. Unfortunately the Senate tax reform legislation still includes this damaging provision. We still need your help.
We are still very hopeful that the royalties’ provision in the tax bill will be remedied in the manager’s amendment that is expected to hit the Senate floor today or tomorrow. Because of the speed with which Senate leadership is moving on this issue, it’s extremely important that we continue to make our case on royalty income while we still can. Now is the time to reach out to any Republican senators and staff if you have concerns about how the bill treats associations and other tax-exempt organizations.
We need your continued help to remind Congress how royalties impact the association community and contribute to our exempt missions. If your association is impacted we encourage you to share this document with our talking points on royalty arrangements as well as the specific stories we have collected from many of you about how the taxation of royalty income would affect various associations.
Associations around the country rely on royalties as passive income that’s reinvested in their exempt mission. Any expansion of the UBIT statute could significantly impact any association’s bottom line, directly affecting its ability to carry out its work. We know that royalties are a significant source of non-dues revenue for associations that can be reinvested in education, skills training, standard-setting, research and other activities. We need to share this message with any contacts you may have with Members of Congress and staff.
Thank you again for your support. If you have any questions don’t hesitate to contact the Public Policy Department at 202.626.2703 or email@example.com. Thank you for continuing to make this important argument on behalf of the association and tax-exempt community.