Tax Law and Guidance    Tax Clarity Act Changes - Tax-exempt Organizations The tax exemption criteria are more closely linked to federal requirements. There are new requirements for unrelated business income of tax-exempt organizations. The filing date for real property exemption report is now April 1. Tax-Exempt Criteria More Closely Linked to Federal Requirements The District of Columbia definition of an exempt organization is changed to conform to that used by the Internal Revenue Service. The new definition will include the following organizations not currently part of the District's definition: Activities that foster national or international amateur sports competition Professional football leagues not organized for profit Domestic fraternal organizations Organizations of former and current armed service members Social clubs will not be included in the DC definition of tax-exempt organizations. The criteria for tax exemption in the District will now reflect the following: Educational organizations no longer are required to embrace a teacher-student relationship. Exempt organizations no longer need to carry on a substantial portion of activities in the District to be eligible for DC tax exemption.   Q.   Does this mean that I will automatically be eligible for a District of Columbia tax exemption if I have a federal exemption?   A.   No. If you have not done so, it is still necessary to apply for a District of Columbia tax exemption. Changes in Requirements for Unrelated Business Income of Tax-Exempt Organizations The following changes have occurred in the filing of tax returns to report unrelated business income of tax-exempt organizations: Unrelated business income must be reported on a corporate franchise tax return (D-20) to the District of Columbia. The corporate returns are due the 15th day of the 5th month. Unrelated business income is subject to allocation and/or apportionment. Unrelated business income of employer trusts benefiting employees is subject to tax. Personal property used to generate unrelated business income is subject to personal property tax. Filing Date for Real Property Exemption Use Report Forms is Changed to April 1 The filing date for real property exemption use report forms has been changed to April 1 from March 1.