05/08/2018

Tax Reform and Fringe Benefits Update

To lend your support, consider signing a letter from ASAE by May 15, 2018

The 2017 Tax Cuts and Jobs Act (TCJA), signed into law in December, has several provisions that affect associations.  The American Society of Association Executives (ASAE) and a number of our members have expressed concern about the taxation of parking and transportation fringe benefits included in the law.

ASAE and a delegation of association representatives recently met with U.S. Department of Treasury officials to share our concerns on this issue. While the provision applies to all employers, the new law disproportionately hurts tax-exempt employers by requiring them to pay a new unrelated business income tax (UBIT) on the value of benefits. ASAE contends this is a new tax on an expenditure, not a revenue-generating activity.

In the course of our meeting, it was recommended that ASAE and its sister organizations put their concerns in writing and share those with Treasury as the agency works to provide guidance to employers on this portion of the tax law.

To that end, ASAE has drafted this sign-on letter for organizations that wish to weigh in on this issue. The Ohio Society of Association Executives (OSAE) will be co-signing the letter. If you would like to add your organization’s name to this letter, email ASAE Director of Public Policy Mary Kate Cunningham at mcunningham@asaecenter.org. The deadline to add your organization's name is Tuesday, May 15.

If you have additional questions about this letter or the fringe benefits provision in the tax law, please contact ASAE’s public policy team at publicpolicy@asaecenter.org.