Tax Equalization Act - Provides that no deduction or any other allowance which has the effect of reducing gross income shall be permitted to cooperative corporations for amounts paid or accrued as "patronage dividends" by such corporations.
Defines cooperative corporation as one that represents to persons dealing with it that their patronage will entitle them to patronage dividend or an equity interest in the corporation assets or that is otherwise operated for the mutual benefit of persons that deal with it.
Defines patronage dividends as allocations paid to members on some basis related to their transactions with the cooperative corporation if the allocation is based on profit margins, income from the resale of the producers products, or dividends declared.
Allows the tax exclusion for patronage dividends with respect to farmer's cooperative associations.
Introduced in House
Introduced in House
Referred to House Committee on Ways and Means.
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