Arkansas State Police Association, Inc. v. Commissioner of Internal Revenue

BYE, Circuit Judge.

The Arkansas State Police Association (ASPA) challenges the Tax Court’s 2 decision that money ASPA received from the publication of “The Arkansas Trooper” magazine should be taxed as unrelated business income, rather than treated as nontaxable royalty income. We affirm.

I

ASPA is a non-profit corporation generally recognized as exempt from federal income tax under 26 U.S.C. § 501(c)(5) (labor organization). From 1993 through 1996, ASPA entered into an agreement with Brenb-Wyatt West (BWW), an Arizona publishing company, to publish “The Arkansas Trooper” magazine three times a…