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View Diary: California Moving To Change Boy Scouts Tax-Exempt Status (16 comments)

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  •  I don't think this will have much impact (0+ / 0-)

    Even if passed it would not impact the federal tax exempt status of the Boy Scouts, so we are only talking about state tax issues. Organizations like the Boy Scouts in California are unlikely to have "profits" so I don't think they would generate more tax revenue. They already have to file an annual return, so I don't really know what the benefit will be to the State of California.

    I don't know how it would impact real estate issues. If the Boy Scouts have campgrounds and lose their tax exempt status I guess they will sell their camping properties to developers. That will raise some tax revenues.  

    "let's talk about that"

    by VClib on Thu Apr 11, 2013 at 11:09:03 AM PDT

    •  They have already filed their tax return (5+ / 0-)

      But they'll have to file one next year as well. And the year after that. And so on. Not all taxes are based on profits; some are based on revenues. They would need to collect and forward sales tax on any items they sell.

      While the state cannot have any affect on how the organization is treated at the federal level, changing their state-level tax treatment will nonetheless have an effect. They will no longer be exempt from property taxes and, while a deduction can still be claimed at the federal level, no corresponding deduction will apply at the state level. This would of course require that people who donate to the BSA and who itemized their deductions make adjustments when filing their state taxes; I think a system like Turbotax would handle that pretty easily though. The inconvenience would undoubtedly affect the decision of at least SOME people to donate directly to the BSA though.

      I think the lesson is clear: if the BSA insists on continuing to discriminate, there ought to be a price for it.

    •  Big impact likely on sales tax (2+ / 0-)
      Recommended by:
      IB JOHN, Nattiq

      AFAIK being tax exempt usually allows the group to avoid paying sales taxes, which could add up for scout troops wanting supplies, equpment, and other stuff.

      "No one life is more important than another. No one voice is more valid than another. Each life is a treasure. Each voice deserves to be heard." Patriot Daily News Clearinghouse & Onomastic

      by Catte Nappe on Thu Apr 11, 2013 at 01:15:12 PM PDT

      [ Parent ]

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