,,ii  #aafth ,,congress  #ast ,session  
,s4 #aaba  ,,in ,,the ,,senate ,,of     
,,the ,,united ,,states  ,april #aj1    
#bjai,ms4 ,ernst 7for herself and ,mr4  
,king7 introduced the following bill2   
which was read twice and referred to the
 ,committee on ,finance  ,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
 ,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 nonprofit
 organizations under section            
#eja7;c77#f7 of the ,internal ,revenue  
,code of #aihf4  7#b7 ,league-wide      
operations of the ,,nhl1 ,,pga ,tour1   

and ,,lpga together generate over       
#a1jjj1jjj1jjj in annual revenue1 and   
these businesses are unmistakably       
organized for profit and to promote     
their brands4  7#c7 ,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#d7 ,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    
#bjai4  #d4 ,special rules relating to  
professional sports leagues  7a7 ,in    
general ,section #eja of the ,internal  
,revenue ,code of #aihf is amended by   
adding at the end 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 amendment 
made by this section shall apply to     
taxable years beginning after ,december 
#ca1 #bjai4