S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   11023
 
                           I N  A S S E M B L Y
 
                              October 7, 2020
                                ___________
 
 Introduced  by COMMITTEE ON RULES -- (at request of M. of A. Schmitt) --
   read once and referred to the Committee 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.
              

                                                            LBD08903-01-9

 A. 11023                            2
 
   (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.
 §501)  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.
   §  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.
   §  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.
   § 4. This act shall take effect January 1, 2020.