27. Suspension of tax-exempt status of terrorist organizations. 1. An organization that is removed from the tax-exempt organizations list by the internal revenue service pursuant to subsection (p) of section 501 of title 26 of the United States Code shall not be exempt from any tax, fee or other imposition administered by the commissioner, and it shall also not be an exempt organization with respect to any sale, transfer or assignment, beginning on the later of November eleventh, two thousand three, or the date that the internal revenue service publishes revocation of the organization's tax-exempt status. In the case of any personal income or corporate franchise tax imposed under or pursuant to the authority of this chapter, such revocation of exempt status shall apply with respect to the entire taxable year in which the date of revocation occurs and to subsequent taxable years.
2. An organization whose tax-exempt status has been revoked pursuant to subdivision one of this section and whose tax-exempt status is later restored by the internal revenue service shall be required to submit a new application or applications and be approved before any such status shall be restored with respect to any such tax, fee or other imposition administered by the commissioner.
3. An organization whose tax-exempt status is suspended pursuant to subdivision one of this section shall have the right to appeal the determination using the procedure prescribed by article forty of this chapter or otherwise prescribed pursuant to this chapter, provided that the organization cannot challenge the merits of the determination made by the internal revenue service.
4. If an organization makes a sale of property or services on or after the date its exempt status has been revoked under subdivision one of this section, such sale shall be taxable; and the organization shall be required to collect, pay or pay over any tax due on any such sale on or after such date. If such organization fails to collect tax on any such sale, the purchaser shall owe any tax due and shall pay it directly to the commissioner in accordance with applicable law; provided, however, that, if such purchaser does not have knowledge that such organization's exempt status has been revoked, then such purchaser shall not be liable for any penalty or interest for failing to file a return or to pay such tax if such purchaser files such a return and pays such tax due within thirty days of the date that such purchaser learns that the tax is owed on such purchase.
Last modified: February 3, 2019