,i  #aacth ,,congress  #b;d ,session    
,h4 ,r4 #cife  ,,in ,,the ,,house ,,of  
,,representatives  ,january #bi1        
#bjad,mr4 ,chaffetz introduced the      
following bill2 which was referred to   
the ,committee on ,ways and ,means  ,a  
,,bill  ,to amend the ,internal ,revenue
 ,code of #aihf to exclude major        
professional sports leagues from        
qualifying as tax-exempt organizations4 
#a4 ,short title ,this ,act may be cited
 as the ,properly ,reducing             
,overexemptions for ,sports ,act or the 
,,pro ,sports ,act4  #b4 ,findings      
,congress makes the following findings3 
7#a7 ,the ,national ,football ,league   
7,,nfl71 ,national ,hockey ,league      
7,,nhl71 ,,pga ,tour1 and ,ladies       
,professional ,golf ,association        
7,,lpga7 each have league offices that  
are registered with the ,internal       
,revenue ,service as non-profit         
organizations under section #eja7;c77#f7
 of the ,internal ,revenue ,code of     
#aihf4  7#b7 ,league-wide operations of 

the ,,nfl1 ,,nhl1 ,,pga ,tour1 and      
,,lpga generate an estimated #ac billion
 in annual revenue1 and these businesses
 are unmistakably organized for profit  
and to promote their brands4  7#c7      
,separate from their subsidiaries1 the  
nonprofit league offices of the ,,nfl1  
,,nhl1 ,,pga ,tour1 and ,,lpga had      
annual gross receipts of #ahd4c million1
 #hi4a million1 #a4d billion1 and #gc4g 
million in #bjaj1 respectively1 for a   
combined total of over #a4g billion1    
according to each organization's        
publicly available ,form #iij filed with
 the ,internal ,revenue ,service4  7#d7 
,according to the ,internal ,revenue    
,service1 section #eja7;c77#f7 of the   
,internal ,revenue ,code of #aihf is for
 groups looking to promote a common     
business interest and not to engage in a
 regular business of a kind ordinarily  
carried on for profit4  7#e7 ,according 
to the ,internal ,revenue ,service1     
businesses that conduct operations for  
profit on a cooperative basis should not

 qualify for tax-exempt treatment under 
section #eja7;c77#f7 of the ,internal   
,revenue ,code of #aihf4  #c4           
,elimination of specific exemption for  
professional football leagues  7a7 ,in  
general ,paragraph 7#f7 of section      
#eja7;c7 of the ,internal ,revenue ,code
 of #aihf is amended-- 7#a7 by striking 
1 or professional football leagues      
7whether or not administering a pension 
fund for football players71 and  7#b7 by
 inserting or after real-estate boards14
  7b7 ,effective date ,the amendments   
made by this section shall apply to     
taxable years beginning after ,december 
#ca1 #bjac4  #d4 ,special rules relating
 to professional sports leagues  7a7 ,in
 general ,section #eja of the ,internal 
,revenue ,code of #aihf is amended--    
7#a7 by redesignating subsection 7s7 as 
subsection 7t71 and  7#b7 by inserting  
after subsection 7r7 the following new  
subsection3  7s7 ,special rules relating
 to professional sports leagues ,no     
organization or entity shall be treated 

as described in subsection 7c77#f7 if   
such organization or entity-- 7#a7 is a 
professional sports league1             
organization1 or association1 a         
substantial activity of which is to     
foster national or international        
professional sports competitions        
7including by managing league business  
affairs1 officiating or providing       
referees1 coordinating schedules1       
managing sponsorships or broadcast      
sales1 operating loan programs for      
competition facilities1 or overseeing   
player conduct71 and  7#b7 has annual   
gross receipts in excess of #aj1jjj1jjj4
  4  7b7 ,effective date ,the amendments
 made by this section shall apply to    
taxable years beginning after ,december 
#ca1 #bjac4