Nonprofits battle a new tax affecting nonprofit commuters

Nonprofits battle a new tax affecting nonprofit commuters

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The Nonprofit Coordinating Committee of New York is urging action on an outstanding bill that would prevent a tax on commuter benefits. Changes to the federal tax code left nonprofits vulnerable to the Unrelated Business Income Tax, but the state Legislature passed a fix that awaits the governor’s signature. The NCCNY is urging nonprofits to call or email the governor to catalyze action on the matter.

“To levy a tax on commuter benefits given to employees, who are carrying out the organization’s mission every day, is unprecedented,” nonprofit advocates Allison Sesso, Doug Sauer and Sharon Stapel wrote in a September op-ed in the New York Daily News. “For-profit businesses only pay taxes if they are profitable, and are not subject to a specific commuter tax, while cash-strapped nonprofits are forced to pay this tax even if they operate at a loss. In New York alone, this provision would force nonprofits to pay up to $364 million extra on commuter benefits.”

Source Name: 
New York Nonprofit Media

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