Rep. Jason Chaffetz wants to strip the National Football League and the National Hockey League of their tax-exempt status.
The Utah Republican introduced legislation Wednesday that would end tax exemption for professional sports leagues, specifically the NFL and NHL.
“Professional sports organizations aren’t fooling anybody. Organizations like the NFL and NHL are for-profit businesses making millions of dollars each year. These are not charities nor are they traditional trade organizations. They are for-profit businesses and should be taxed as such,” Chaffetz said in a press release. “Closing this loophole should be combined with closing several other loopholes in order to lower tax rates in a revenue-neutral manner.”
The loophole would specifically eliminate the exemption for professional sports organizations with annual revenues over $10 million. The NFL and NHL are both considered “a trade association of manufacturers” — like the U.S. Chamber of Commerce — in the current tax code, making their respective league offices tax-exempt.
League officials have fought off losing their tax-exempt status because league teams themselves, along with ticket and jersey sales, are not tax-exempt.
Last year, the Joint Committee on Taxation said removing the non-profit status for major professional sports leagues, like the NFL and NHL, would increase federal revenues by $109 million over 10 years.
The Professional Golf Association, Ladies’ Professional Golf Association and Association of Tennis Professionals also enjoy tax-exempt status. Major League Baseball used to be exempt but gave up the status in 2007.
Chaffetz also attempted, but failed, with a similar bill last year.
The calls were loud against the NFL losing tax-exempt status last year, the Washington Examiner reported in January.
