To amend the Internal Revenue Code of 1986 with respect to the treatment of amounts received by tax-exempt organizations from sales, rentals, or other dispositions of lists of members, customers, or contributors.

Amends the Internal Revenue Code to include as income, for purposes of the unrelated business income tax, amounts received or accrued by tax-exempt organizations in connection with the sale, lease, rental, or other disposition of member, customer, or contributor lists. Exempts certain charitable and veterans' organizations from this provision in the case of transactions involving like organizations.

 
B37 5-11-89 (OC's)
HR 2275 IH
101st CONGRESS
1st Session
 H. R. 2275
To amend the Internal Revenue Code of 1986 with respect to the treatment of
amounts received by tax-exempt organizations from sales, rentals, or other
dispositions of lists of members, customers, or contributors.
IN THE HOUSE OF REPRESENTATIVES
May 9, 1989
Mr. DONNELLY introduced the following bill; which was referred to the
Committee on Ways and Means
A BILL
To amend the Internal Revenue Code of 1986 with respect to the treatment of
amounts received by tax-exempt organizations from sales, rentals, or other
dispositions of lists of members, customers, or contributors.
  Be it enacted by the Senate and House of Representatives of the United
  States of America in Congress assembled, That (a) subsection (b) of section
  512 of the Internal Revenue Code of 1986 (relating to modifications to
  unrelated business taxable income) is amended by adding at the end thereof
  the following new paragraph:
  `(16)(A) Notwithstanding the preceding provisions of this subsection, any
  amount received or accrued in connection with the sale, lease, rental, or
  other grant of a right to use a list of members, customers, or contributors
  shall be included as an item of gross income derived from an unrelated
  trade or business regularly carried on by the organization. There shall be
  allowed all deductions directly connected with amounts so included under
  this subparagraph.
  `(B) In the case of an organization referred to in section 513(h)(1),
  subparagraph (A) shall not apply to amounts received or accrued from a
  transaction described in subparagraph (B) of such section.'.
  (b) The amendment made by subsection (a) shall apply to amounts received
  or accrued after April 28, 1988.