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Who cares
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Sponsors
3 Co-sponsors
History
- Print number 2920a
- Amend and recommit to investigations and government operations
- Referred to investigations and government operations
- Referred to investigations and government operations
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Imposes franchise taxes on professional football leagues
In Assembly Committee · Ways And Means · Sponsor Deborah Glick
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
Title of bill
An act to amend the tax law, in relation to imposing franchise taxes on professional football leagues
Purpose or general idea of bill
To recognize professional football leagues as for-profit businesses in the State of New York, notwithstanding their designation in federal law as not-for-profit 501(c)(6) entities.
Summary of specific provisions
Section 1 of the bill amends section 209 of the tax to specify that professional football leagues, as that term is defined in 26 U.S.C. Section 501 of federal tax law, shall not be considered nonprofit organizations for the purposes of New York State tax laws.
Section 2 of the bill is the effective date.
Justification
In 1966, a loophole was created in the federal tax code classifying "professional football leagues" as tax-exempt 501(c)(6) organizations, a designation otherwise reserved for trade organizations like chambers of commerce.
One such professional football league, the National Football League (NFL), has annual revenues approaching $10 billion, a figure that is projected to climb over the next decade. Meanwhile, New York State taxpayers are helping to underwrite the exorbitant salaries of the NFL's executives, including the $44 million salary of its CEO in 2013.
Other major professional sports leagues headquartered in New York State are taxed as for-profit entities, including the National Basketball Association and Major League Baseball. Professional football leagues, including the NFL, should be subject to the same requirements.
Prior legislative history
New bill.
Fiscal implications
An increase in state revenues generated through the franchise tax.
Effective date
This act shall take effect January 1, 2017 and shall apply to all tax years commencing on or after such date.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.