HEROSPORTS
  • Home
  • FCS
    • FCS Home
    • Big South-OVC
    • Big Sky
    • CAA
    • Ivy
    • MEAC
    • MVFC
    • NEC
    • Patriot
    • Pioneer
    • SoCon
    • Southland
    • SWAC
    • UAC
  • FBS
    • FBS Home
    • AAC Football
    • CUSA Football
    • MAC Football
    • Mountain West Football
    • Sun Belt Football
  • College Basketball
  • Register at BetMGM
  • BetMGM Promotions
  • More
    • About HERO Sports
    • Contact
No Result
View All Result
  • Home
  • FCS
    • FCS Home
    • Big South-OVC
    • Big Sky
    • CAA
    • Ivy
    • MEAC
    • MVFC
    • NEC
    • Patriot
    • Pioneer
    • SoCon
    • Southland
    • SWAC
    • UAC
  • FBS
    • FBS Home
    • AAC Football
    • CUSA Football
    • MAC Football
    • Mountain West Football
    • Sun Belt Football
  • College Basketball
  • Register at BetMGM
  • BetMGM Promotions
  • More
    • About HERO Sports
    • Contact
No Result
View All Result
HEROSPORTS
No Result
View All Result

Senate Tax Plan Takes Another Swipe at Athletic Departments, Would Tax Royalties

HERO Sports by HERO Sports
November 21, 2017
Senate Tax Plan Takes Another Swipe at Athletic Departments, Would Tax Royalties

Congress continues to take swipes at college athletics.

As athletic departments scramble to identify new potential sources of revenue if fundraising declines thanks to a provision in the House of Representatives tax plan that would end tax deductible donations for ticket purchases (currently 80 percent of ticket donations are taxable), they're getting hit again — this time by the Senate tax plan. 

Currently, non-profits are exempt from paying federal taxes on their income, which includes royalties from use of their name and logo. Under this plan, that revenue would be taxed at the corporate rate of 20 percent, which could be a huge sum of money for some schools (e.g. The News & Observer says that it would cost North Carolina around $700,000 annually).

MORE: How Ohio State Can Make the Playoff

In the Description of Proposal in Section L, it states the following:

"Specifically, the proposal amends section 513 (regarding unrelated trades or businesses) to provide that any sale or licensing by an organization of any name or logo of the organization (including any trademark or copyright related to a name or logo) is treated as an unrelated trade or business that is regularly carried on by the organization.

"In addition, the proposal amends section 512 (regarding unrelated business taxable income) to provide that income derived from any such licensing of a name or logo of the organization is included in the organization’s gross unrelated business taxable income, notwithstanding the provisions of section 512 that otherwise exclude certain types of passive income (including royalties) from unrelated business taxable income."

If both pieces of the tax plans (deduction for ticket-related donations and royalty taxes) are included a final tax plan that passes, college athletic departments will almost assuredly see seven- or eight-figure hits to the annual revenue.

[divider]

NEXT: 2018 NFL Mock Draft: How High Does Saquon Barkley Go?

Previous Post

San Diego State Coaches Blame ESPN, East Coast Prejudice for Rashaad Penny’s Heisman Chances

Next Post

Why Each FCS Seed Can and Can’t Win the National Championship

Next Post
Why Each FCS Seed Can and Can’t Win the National Championship

Why Each FCS Seed Can and Can’t Win the National Championship

No Result
View All Result

Recent Posts

  • College Football Playoff Format: CFP Moving To Straight Seeding In 2025
  • Life As An Interim Athletic Director: All In For Farkas And Northern Arizona
  • 2025 FCS Jersey Countdown: The Best Returning Player For Each Number

HERO Sports is the go-to website for FBS and FCS football news, analysis, and predictions.

Gambling problem? Call 1-800-GAMBLER (Available in the US)
877-8-HOPENY or text HOPENY (467369) (NY)
1-800-327-5050 (MA), 1-800-NEXT-STEP (AZ), 1-800-BETS-OFF (IA), 1-800-981-0023 (PR)

For new customer offers, Bonus Bets expire in seven days. One New Customer Offer only. Add'l terms. For existing customers, Bonus Bets expire in seven days. Add'l terms.

21+ only. Please Gamble Responsibly. See BetMGM.com for Terms. First Bet Offer for new customers only (if applicable). Subject to eligibility requirements. Bonus bets are non-withdrawable. In partnership with Kansas Crossing Casino and Hotel. This promotional offer is not available in DC, Mississippi, New York, Nevada, Ontario, or Puerto Rico.

Welcome Offer Bet $10, $150 in Bonus Bets

GAMBLING PROBLEM? CALL 1-800-GAMBLER (AVAILABLE IN THE US). 21+ ONLY. CO, MI, NJ, PA, WV ONLY. PLEASE GAMBLE RESPONSIBLY. SEE BETMGM.COM FOR TERMS. THIS PROMOTIONAL OFFER IS FOR NEW PLAYERS ONLY. SUBJECT TO ELIGIBILITY REQUIREMENTS. BONUS BETS ARE NON-WITHDRAWABLE. US PROMOTIONAL OFFERS NOT AVAILABLE IN MISSISSIPPI, NEVADA, NEW YORK, ONTARIO AND PUERTO RICO.

  • About HERO Sports
  • Contact
  • Privacy Policy

© 2022 HERO SPORTS.

No Result
View All Result
  • Home
  • FCS
    • FCS Home
    • Big South-OVC
    • Big Sky
    • CAA
    • Ivy
    • MEAC
    • MVFC
    • NEC
    • Patriot
    • Pioneer
    • SoCon
    • Southland
    • SWAC
    • UAC
  • FBS
    • FBS Home
    • AAC Football
    • CUSA Football
    • MAC Football
    • Mountain West Football
    • Sun Belt Football
  • College Basketball
  • Register at BetMGM
  • BetMGM Promotions
  • More
    • About HERO Sports
    • Contact

© 2022 HERO SPORTS.