Republican Rep. Jason Chaffetz of Utah is looking to strip the NFL and NHL of their tax exempt status.
The Washington Examiner reports that Chaffetz introduced a bill on Wednesday that would specifically target professional football and professional hockey.
Chaffetz commented on the bill in a press release, saying that these organizations are not charity-based, but rather profit-based.
“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” said Chaffetz. “They are for-profit businesses and should be taxed as such.”
Chaffetz added, “Closing this loophole should be combined with closing several other loopholes in order to lower tax rates in a revenue-neutral manner.”
The language in the bill would eliminate tax exemptions for sports organizations that make annual revenues of over $10 million.
Currently the NFL and NHL are both technically considered “a trade association of manufacturers.” Under the existing tax structure, this makes their leagues offices tax-exempt.
The Joint Committee on Taxation says the move could net $109 million for federal coffers, over a period of 10 years.