NONPROFIT ORGANIZATIONS' UNRELATED BUSINESS INCOME TAX

NONPROFIT ORGANIZATIONS' UNRELATED BUSINESS INCOME TAX was discussed at a closed-door meeting of the House Ways and Means/Oversight Subcommittee August 2. Subcommittee Chairman Pickle (D-Tex.) called the meeting in an effort to move the subcommittee's 1988 recommendations on UBIT issues to the full committee for review. Ways and Means Chairman Rostenkowski (D-Ill.) has indicated that he wants the full committee to assess the recommendations, according to subcommittee staff. The subcommittee reportedly made no progress in terms of selecting specific legislative recommendations. Pickle asked members to familiarize themselves with UBIT issues during the summer recess. He is planning to hold another subcommittee session on UBIT in September. Last year, the panel developed a list of possible changes in the UBIT law to tax certain activities of nonprofit entities. One option floated by the subcommittee would require nonprofits to pay tax on sales and rentals of pharmaceuticals and medical equipment.