S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  8391

                          I N  A S S E M B L Y

                             January 9, 2014
                               ___________

Introduced by M. of A. McDONALD -- read once and referred to the Commit-
  tee on Ways and Means

AN  ACT  to  amend  the tax law, in relation to exempting certain senior
  citizen organizations from paying sales and compensating use taxes

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1. Subdivision (a) of section 1116 of the tax law, as amended
by chapter 530 of the laws of 1976, paragraph 4 as  amended  by  chapter
270  of  the  laws of 2001, paragraph 5 as amended by chapter 366 of the
laws of 1983, subparagraph (B) of paragraph 5 as amended by chapter  418
of the laws of 2004, subparagraph (C) of paragraph 5 as amended by chap-
ter  296 of the laws of 2006, paragraph 7 as added by chapter 903 of the
laws of 1980, paragraph 8 as added by chapter 888 of the laws  of  1983,
paragraph 9 as amended by chapter 591 of the laws of 2005, is amended to
read as follows:
  (a)  Except  as otherwise provided in this section, any sale or amuse-
ment charge by or to any of the following or any use or occupancy by any
of the following shall not be subject to the sales and compensating  use
taxes imposed under this article:
  (1)  The state of New York, or any of its agencies, instrumentalities,
public corporations (including a public corporation created pursuant  to
agreement or compact with another state or Canada) or political subdivi-
sions  where  it  is  the  purchaser, user or consumer, or where it is a
vendor of services or property of a kind not ordinarily sold by  private
persons[;].
  (2)  The United States of America, and any of its agencies and instru-
mentalities, insofar as it is immune  from  taxation  where  it  is  the
purchaser, user or consumer, or where it sells services or property of a
kind not ordinarily sold by private persons[;].
  (3)  The United Nations or any international organization of which the
United States of America is a member where it is the purchaser, user  or
consumer,  or where it sells services or property of a kind not ordinar-
ily sold by private persons[;].

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
A                                                          LBD13292-03-3
              

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  (4) Any corporation, association, trust,  or  community  chest,  fund,
foundation,  or limited liability company, organized and operated exclu-
sively for religious, charitable, scientific, testing for public safety,
literary or educational purposes, or to foster national or international
amateur  sports  competition  (but  only  if  no  part of its activities
involve the provision of athletic facilities or equipment), or  for  the
prevention  of  cruelty to children or animals, no part of the net earn-
ings of which inures to the benefit of any private shareholder or  indi-
vidual,  no  substantial  part of the activities of which is carrying on
propaganda, or otherwise attempting to influence legislation, (except as
otherwise provided in subsection (h) of section five hundred one of  the
United  States  internal revenue code of nineteen hundred fifty-four, as
amended), and which does not participate in, or intervene in  (including
the publishing or distributing of statements), any political campaign on
behalf of any candidate for public office[;].
  (5)  A  post  or  organization of past or present members of the armed
forces of the United States, or an auxiliary unit or society  of,  or  a
trust or foundation for, any such post or organization:
  (A) organized in this state,
  (B)  at least seventy-five percent of the members of which are past or
present members of the armed forces of the United States as  defined  in
section thirteen-a of the general construction law and substantially all
of  the  other  members  of  which are individuals who are cadets or are
spouses, widows, widowers, ancestors, or lineal descendants of  past  or
present  members  of the armed forces of the United States or of cadets,
and
  (C) no part of the net earnings of which inures to the benefit of  any
private shareholder or individual.
  (6) The following Indian nations or tribes residing in New York state:
Cayuga,  Oneida, Onondaga, Poospatuck, Saint Regis Mohawk, Seneca, Shin-
necock, Tonawanda and Tuscarora, where it  is  the  purchaser,  user  or
consumer.
  (7)  A  not-for-profit  corporation  operating as a health maintenance
organization subject to the provisions  of  article  forty-four  of  the
public health law.
  (8)  Cooperative and foreign corporations doing business in this state
pursuant to the rural electric cooperative law.
  (9) A credit union, as defined in subdivision nine of section  two  of
the  banking law, where it is the purchaser, user, or consumer, or where
it is a vendor of services or property of a kind not ordinarily sold  by
private persons.
  (10)  SENIOR  CITIZEN  ORGANIZATIONS  ORGANIZED  PURSUANT  TO  SECTION
501(C)(3) OR SECTION 501(C)(7) OF THE INTERNAL REVENUE CODE  (26  U.S.C.
S501)  WHICH  LIMIT MEMBERSHIP TO MEMBERS AGE FIFTY AND OLDER, AND WHICH
ARE ORGANIZED FOR PLEASURE,  SOCIAL,  EDUCATIONAL,  RECREATIONAL  AND/OR
OTHER NON-PROFIT PURPOSES, PROVIDED:
  (A)  NO  PART OF THE NET EARNINGS OF WHICH INURE TO THE BENEFIT OF ANY
PRIVATE SHAREHOLDER OR INDIVIDUAL;
  (B) NO SUBSTANTIAL PART OF THE ACTIVITIES  OF  WHICH  IS  CARRYING  ON
PROPAGANDA, OR OTHERWISE ATTEMPTING TO INFLUENCE LEGISLATION, (EXCEPT AS
OTHERWISE  PROVIDED IN SUBSECTION (H) OF SECTION FIVE HUNDRED ONE OF THE
UNITED STATES INTERNAL REVENUE CODE OF NINETEEN HUNDRED  FIFTY-FOUR,  AS
AMENDED),  AND WHICH DOES NOT PARTICIPATE IN, OR INTERVENE IN (INCLUDING
THE PUBLISHING OR DISTRIBUTING OF STATEMENTS), ANY POLITICAL CAMPAIGN ON
BEHALF OF ANY CANDIDATE FOR PUBLIC OFFICE; AND

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  (C) THE EXEMPTION APPLIES ONLY TO  PURCHASES  THAT  ARE  MADE  BY  THE
ORGANIZATION ITSELF AND NOT FOR PURCHASES BY ANY OF ITS MEMBERS INDIVID-
UALLY.
  S  2.  Subdivision  (g)  of section 1116 of the tax law, as amended by
chapter 3 of the laws of 2004, is amended to read as follows:
  (g) For purposes of [paragraph] PARAGRAPHS five AND TEN of subdivision
(a) of this section, duly authorized representatives of any such post or
organization, while acting on behalf of such post or organization, shall
not be subject to the tax imposed under subdivision (e) of section elev-
en hundred five or the unit fee imposed by section eleven  hundred  four
of  this  article,  provided that such representatives provide an exempt
organization certificate from such post or organization certifying  that
such representative is acting on its behalf.
  S  3.  The  commissioner  of  taxation  and  finance is authorized and
directed to develop and place into effect all rules and regulations, and
take all other measures necessary, to implement the provisions  of  this
act  on  or  before  its  effective  date, including, but not limited to
making all necessary changes to the "Application for an Exempt Organiza-
tion Certificate" (Form ST-119.2) and any other forms utilized  by  tax-
exempt entities.
  S 4. This act shall take effect January 1, 2015.