It's not too late to call, write, or email your New York State Assembly Member and Senator and urge them to pass bill S.8831 / A.11051 , which will correct an unintended new tax created by recent ch anges made in the Federal Internal Revenue Code and that adversely impacts nonprofits.

As a result of the new federal tax law, nonprofit employers must now pay  Unrelated Business Income Tax (UBIT)  on commuter benefits, including the Buffalo NFTA Metro Pass, NYC Metrocard, Rochester RTS Pass, or employee parking. New York law imposes a state UBIT whenever federal law does. As a result, New York will automatically follow the new federal statute, imposing an additional 9% tax. For example, this means that for an employer with 40 employees, each of whom receives $150 per month in pre-tax commuter benefits, could owe New York State $6,480 in new taxes each year.

A recent memo from NPCC and some members of a larger coalition calls for legislation to pass bill S.88831. We need your help in making this happen. Use the coalition's call script and sample letter to contact your state legislators today.

Still have questions about UBIT? We've gathered these helpful resources:

  • FAQ about UBIT (Lawyers Alliance for New York)

  • Podcast about UBIT (National Council of Nonprofits; Tate and Tryon)

  • Coalition memo in support of bill S.8821 (NPCC and coalition members)

  • Letter to the Treasury and IRS (NPCC)