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New York Tax Law Section 27 - Suspension Of Tax-exempt Status Of Terrorist Organizations.

Legal Research Home > New York Lawyer > Tax > New York Tax Law Section 27 - Suspension Of Tax-exempt Status Of Terrorist Organizations.

    § 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 An organization whose tax-exempt status has been  revoked  pursuant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  the date its exempt status has been revoked  under  subdivision  one  of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: September 7, 2006