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Comparative analysis of tax exempt status for Federal income and Windfall Profit taxation

Journal Article · · Oil Gas Tax Q.; (United States)
OSTI ID:6589153

The rationale for granting tax-exempt status to charitable, educational, religious, and scientific (CERS) organizations is examined in light of the limited exemption given to small-volume royalty owners under the Crude Oil Windfall Profits Tax Act of 1980 (WPT). A table of income-tax-exempt organizations comparing their status in regard to income taxes, the WPT, and deductible contributions shows that some are subject to the WPT. This not only means a loss of revenue for some, but represents a new policy in limiting the tax-exempt status for passive income. The decision to apply WPT is shown to be contrary to previous tax acts. This raises the possibility of Constitutional questions and litigation, but bills to exempt small-royalty owners may be the best solution. 74 references. (DCK9

Research Organization:
Univ. of Texas, Austin
OSTI ID:
6589153
Journal Information:
Oil Gas Tax Q.; (United States), Journal Name: Oil Gas Tax Q.; (United States) Vol. 26:3; ISSN OGTQD
Country of Publication:
United States
Language:
English