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Section 513(h) is effective for exchanges and rentals of member
lists after October 22, 1986. Respondent contends that the
enactment of section 513(h) implies that renting mailing lists is
generally a trade or business. Respondent asks us to infer from
the enactment of section 513(h) that Congress generally views
gross income from the licensing of mailing lists as UBTI, unless
excepted by section 513(h). We do not draw that inference.
The inference asserted by respondent is rejected in the
legislative history of section 513(h). A colloquy between
Congressmen Daniel Rostenkowski (D-Ill.), Chairman of the Ways
and Means Committee, and John Duncan (R-Tenn.), Ranking
Republican Member of the Ways and Means Committee, occurred in
the House of Representatives on the day of the adoption of the
conference report accompanying the bill which included section
513(h). Chairman Rostenkowski's comments were as follows:
I also have discussed with Congressman Duncan the
issue of whether the provision of the bill which
excludes certain income from unrelated trade or
business income creates any inference under present
law. We have reached a common understanding regarding
the following specific issue:
5(...continued)
donors to (or members of) such
organization, or
(ii) renting such names and
addresses to another such organization.
Tax Reform Act of 1986, Pub. L. 99-514, sec. 1601(a), 100
Stat. 2085, 2766.
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