Sports and Other Event Memorabilia Tax Reform Bill [Passed]

[Verily]

Sports and Other Event Memorabilia Tax Reform Bill

§1. Findings
On August 7, 2007 Barry Bonds set the Major League Baseball record for home runs.  Matt Murphy, the person in stands who caught the ball has indicated that for tax reasons he will be selling the ball rather than keeping it.  It is the sense of the Senate that a person who obtains a item of memorabilia from a sporting event or other event should not be forced to sell that item because of income assessed for tax purposes based on the speculative value of that item.

§2. Definitions
For the purposes of this Act:
   (1) "date of acquisition" is the date at which the event which produced an item of event memorabilia obtained by an attendee began, and
   (2) "item of event memorabilia" means an item obtained by an attendee to an event as a result of that event which obtains extra value as a result of its association with that event or a portion of that event.

§3. Taxable Income
Effective beginning tax year 2007, only the value of an item of event memorabilia exclusive of any added value due to its association with the event that made it an item of event memorabilia shall be considered as taxable income for the tax year of the date of acquisition.  The preceding sentence shall not be deemed to exclude taxing any capital gain from the sale of that item by the attendee, if such sale takes place in the same tax year.

§4. Capital Gains
An item of event memorabilia shall for purposes of determining capital gains realized at its sale shall be deemed to have a cost basis equal to the taxable income assessed under section 3 at the date of acquisition.


(Sponsor: Ebowed)

[Verily]

I am a little concerned by how vague the wording of 2.2 is, specifically, "which obtains extra value as a result of its association with that event or a portion of that event."

For example, someone could claim that a winning lottery ticket obtains extra value as a result of its association with the drawing of its numbers, and thus lottery winnings should be tax-exempt under this law.

Perhaps I'm finding too minute a problem. I have faith that at least the Atlasian Supreme Court would uphold the law's spirit in such a case.

[Verily]

If no one has any concerns at all, I will call for a final vote in 24 hours.

[Small Business Owner of Any Repute]

I am a little concerned by how vague the wording of 2.2 is, specifically, "which obtains extra value as a result of its association with that event or a portion of that event."

For example, someone could claim that a winning lottery ticket obtains extra value as a result of its association with the drawing of its numbers, and thus lottery winnings should be tax-exempt under this law.

Perhaps I'm finding too minute a problem. I have faith that at least the Atlasian Supreme Court would uphold the law's spirit in such a case.

If you were applying the law to a lottery ticket, then the tax value of a winning ticket would indeed stay as $1 even as it obtains that "extra value" through a lucky draw—so long as it is never redeemed for cash.

Upon redemption, you are effectively selling the ticket for it's new, greater value.  And according to the bill, you are now subject to taxes on your newfound short-term capital gain.

I think it's a good bill, personally.  The taxes should come at the monetary realization of the property's "extra" value, not through best-guess appraisals.

[Platypus]

(what's an 'event' in the context of the bill? Something which you bought a ticket to? What about a chance meeting with a musician who gives you their drumsticks or something? Maybe this isn't an issue, but I thought it should be raised)

[Small Business Owner of Any Repute]

Yes, that part is vauge, but it seems to be vague out of necessity.  This shouldn't just apply to sports venues and events.

Unless someone can provide me with an example that I find terribly out of whack, I'll be voting for the bill.

[Verily]

I motion for a final vote.

[Verily]

We are now voting on the final passage of the following legislation. Please vote Aye, Nay or Abstain.

Sports and Other Event Memorabilia Tax Reform Bill

§1. Findings
On August 7, 2007 Barry Bonds set the Major League Baseball record for home runs.  Matt Murphy, the person in stands who caught the ball has indicated that for tax reasons he will be selling the ball rather than keeping it.  It is the sense of the Senate that a person who obtains a item of memorabilia from a sporting event or other event should not be forced to sell that item because of income assessed for tax purposes based on the speculative value of that item.

§2. Definitions
For the purposes of this Act:
   (1) "date of acquisition" is the date at which the event which produced an item of event memorabilia obtained by an attendee began, and
   (2) "item of event memorabilia" means an item obtained by an attendee to an event as a result of that event which obtains extra value as a result of its association with that event or a portion of that event.

§3. Taxable Income
Effective beginning tax year 2007, only the value of an item of event memorabilia exclusive of any added value due to its association with the event that made it an item of event memorabilia shall be considered as taxable income for the tax year of the date of acquisition.  The preceding sentence shall not be deemed to exclude taxing any capital gain from the sale of that item by the attendee, if such sale takes place in the same tax year.

§4. Capital Gains
An item of event memorabilia shall for purposes of determining capital gains realized at its sale shall be deemed to have a cost basis equal to the taxable income assessed under section 3 at the date of acquisition.

[Small Business Owner of Any Repute]

Aye.

[Verily]

Whoops, I forgot to vote!

Aye

[Ebowed]

Aye

[Sam Spade]

Aye.

[Verily]

Tally on Final Passage
Aye: 4 (Moderate; Verily; Ebowed; Sam)
Nay: 0
Yet to Vote: 6 (Afleitch; Brandon; Earl; Friz; Sensei; SoS)

[afleitch]

Abstain.

It's a niche bill.

[Speed of Sound]

Aye

[Verily]

With five in favor and one abstaining, this legislation has enough votes to pass. Senators have twenty-four hours to change their votes.

Revised Tally on Final Passage
Aye: 5 (Moderate; Verily; Ebowed; Sam; SoS)
Nay: 0
Abstain: 1 (Afleitch)
Yet to Vote: 4 (Brandon; Earl; Friz; Sensei)

[Sensei]

aye

[Brandon H]

Aye

[Hatman 🍁]

aye

[Verily]

Result on Final Passage
Aye: 8 (Moderate; Verily; Ebowed; Sam; SoS; Sensei, Brandon; Earl)
Nay: 0
Abstain [Voted]: 1 (Afleitch)
Abstain [Didn't vote]: 4 (Friz)

With eight in favor, this bill has passed and is presented to the President for his signature.

[Colin]

X Colin Wixted

[Small Business Owner of Any Repute]

*polite golf clap*