Sports
Related: About this forumCollege football teams are worried about GOP tax reform
For more than 30 years, colleges and universities have leaned on an obscure tax rule that allows sports boosters to make tax-deductible contributions to their teams. Athletic fundraisers around the country say thats an advantage that generates millions in annual revenue and one thats threatened by Republican tax legislation.
The issue revolves around donations that confer the right to buy top-tier football and basketball tickets. Modeled after seat licenses in pro sports, these contributions have historically been 80 percent tax deductible and have become one of the three main revenue streams in college sports. Ticket sales and money earned from media rights are the other two.
The bill approved by the House Thursday would remove the tax incentive tied to those donations. Congressional tax writers say other kinds of tax relief in the bill are more important. If seat license revenue is important to state-based colleges and universities, then states themselves can provide this tax benefit rather than federal taxpayers, a House Ways and Means Committee spokesperson said in an email.
A plan being debated in the Senate includes a similar measure. If passed, the change would make effectively make those contributions more expensive, and colleges and universities fear that would have a chilling effect on giving.
Read more: http://www.salina.com/zz/shareable/20171121/college-football-teams-are-worried-about-gop-tax-reform
Eko
(7,351 posts)I'm all for getting rid of that.
czarjak
(11,289 posts)TexasTowelie
(112,417 posts)there is a constituency that has enjoyed some perk for decades. That's why tax reform won't pass.