senate Bill S5170

Amended

Denies tax-exempt status to any organization that discriminates against any person, group, organization or other entity based on sexual orientation or gender identity or expression

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Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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actions

  • 13 / May / 2013
    • REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 08 / Jan / 2014
    • REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 07 / Apr / 2014
    • AMEND AND RECOMMIT TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 07 / Apr / 2014
    • PRINT NUMBER 5170A

Summary

Denies tax-exempt status to any organization that discriminates against any person, group, organization or other entity based on sexual orientation or gender identity or expression.

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Bill Details

Versions:
S5170
S5170A
Legislative Cycle:
2013-2014
Current Committee:
Senate Investigations And Government Operations
Law Section:
Tax Law
Laws Affected:
Add §39, Tax L; add §422-a, RPT L

Sponsor Memo

BILL NUMBER:S5170

TITLE OF BILL: An act to amend the tax law and the real property tax
law, in relation to denying tax-exempt status to any organization that
discriminates against any person, group, organization or other entity
based on sexual orientation or gender identity or expression

SUMMARY OF PROVISIONS:

Section One amend the tax law adding a new section 39 to read that
notwithstanding any provision of law to the contrary, any organization
that discriminates against any person, group, youth group,
organization or other entity based on race, weight, national origin,
creed religion, religious practices, mental or physical disability,
sex, sexual orientation or gender identity or expression shall not be
eligible for tax exempt statues for the purpose of any taxes, fees,
fines, penalties, interest or other assessments. The bill furthers
defines "youth group" to include, but not limited to, Little League,
YMCA, YWCA. Future Farmers of America, 4-H Clubs, Girl Scouts, Boy
Scouts, Cub Scouts, Future Business Leaders of America, Boys' Clubs,
Girls Clubs, Special Olympics, American Youth Soccer Association and
Pop Warner Football.

Section Two of the bill adds a new section 422-a to the Real Property
Law to state that notwithstanding any provision of law to the
contrary, any organization that discriminates against any person,
group, youth group, organization or other entity based on race,
weight, national origin, creed religion, religious practices, mental
or physical disability, sex, sexual orientation or gender identity or
expression shall not be eligible for tax exempt statues for the
purpose of any taxes, fees, fines, penalties, interest or other
assessments.

The bill furthers defines "youth, group" to include, but not limited
to, Little League, Boy Scouts, YMCA, YWCA, Future Farmers of America,
4-H Clubs, Future Business Leaders of America, Boys' Clubs, Girls
Clubs, Special Olympics, American Youth Soccer Association and Pop
Warner Football.

Section Three is the Severability Clause

EXISTING LAW: New Law.

JUSTIFICATION: This bill would deny tax-exempt status to youth groups
that discriminate on the basis of sexual orientation or gender
identity or expression.

New York has the proud distinction of being the first state in the
nation to enact a Human Rights Law, which affords every citizen "an
equal opportunity to enjoy a full and productive life." This law
prohibits discrimination in employment, housing, credit, places of
public accommodations, and non-sectarian educational institutions,
based on age, race, national origin, sex, sexual orientation, marital
status, disability, military status, and other specified classes. Any
violation of this law is unacceptable and particularly damaging to
young people. Youth organizations that engage in discrimination in
violation of the Human Rights Law should not be rewarded with


tax-exempt status. Should this bill be enacted youth organizations
that discriminate on the basis of gender identity or race, sexual
orientation, nationality, religion or religious affiliation would have
to pay corporate taxes on donations, membership dues, camp fees and
other sources of income, as well as sales taxes on taxable items.

It has been more than ten years since New York State enacted the
Sexual Orientation Non-Discrimination Act (SONDA), which added actual
or perceived sexual orientation to the characteristics on which
discrimination is prohibited in employment, housing, public
accommodations, education, credit, and the exercise of civil rights.
The United States Supreme Court narrowly ruled in Boy Scouts of
America et al. v. Dale (June 2000) that youth organizations have a
right to establish their own exclusionary membership criteria.
However, this ruling does not entitle these organizations whose which
may possess discriminatory membership policies contrary to
longstanding state and local anti-discrimination laws to tax-exempt
status.

Passage of this legislation would send a strong message about New
York's commitment to civil rights. It should also be noted that
religious organizations, as defined in New York State statute, would
be exempt.

LEGISLATIVE HISTORY: New Bill

FISCAL IMPLICATIONS: None

LOCAL FISCAL IMPLICATIONS: None

EFFECTIVE DATE: This Act shall take effect immediately and shall
aptly to all tax years commencing on or after January 1, 2014.

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

                                  5170

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                              May 13, 2013
                               ___________

Introduced  by  Sen. HOYLMAN -- read twice and ordered printed, and when
  printed to be committed to the Committee on Investigations and Govern-
  ment Operations

AN ACT to amend the tax law and the real property tax law,  in  relation
  to  denying  tax-exempt  status to any organization that discriminates
  against any person, group, organization or other entity based on sexu-
  al orientation or gender identity or expression

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

  Section  1.  The tax law is amended by adding a new section 39 to read
as follows:
  S 39. LOSS OF TAX-EXEMPT STATUS. NOTWITHSTANDING ANY PROVISION OF  LAW
TO THE CONTRARY, ANY ORGANIZATION THAT DISCRIMINATES AGAINST ANY PERSON,
GROUP,  YOUTH GROUP, ORGANIZATION OR OTHER ENTITY BASED ON RACE, WEIGHT,
NATIONAL ORIGIN, CREED, RELIGION, RELIGIOUS PRACTICES, MENTAL  OR  PHYS-
ICAL   DISABILITY,   SEX,  SEXUAL  ORIENTATION  OR  GENDER  IDENTITY  OR
EXPRESSION SHALL NOT BE ELIGIBLE FOR TAX-EXEMPT STATUS FOR  THE  PURPOSE
OF  ANY  TAXES,  FEES,  FINES,  PENALTIES, INTEREST OR OTHER ASSESSMENTS
IMPOSED PURSUANT TO THE PROVISIONS OF THIS CHAPTER;  PROVIDED  THAT  THE
PROVISIONS  OF  THIS SECTION SHALL NOT APPLY TO ANY VALIDLY INCORPORATED
RELIGIOUS  ORGANIZATION.    AS  USED  IN  THIS  SECTION,  "YOUTH  GROUP"
INCLUDES, BUT IS NOT LIMITED TO:  LITTLE LEAGUE, BOY SCOUTS, CUB SCOUTS,
GIRL  SCOUTS, YOUNG MEN'S CHRISTIAN ASSOCIATION, YOUNG WOMEN'S CHRISTIAN
ASSOCIATION, FUTURE FARMERS OF AMERICA, 4-H CLUBS, FUTURE BUSINESS LEAD-
ERS OF AMERICA, BOY'S CLUBS, GIRL'S CLUBS, SPECIAL OLYMPICS, INC., AMER-
ICAN YOUTH SOCCER ORGANIZATION AND POP WARNER FOOTBALL.
  S 2. The real property tax law is amended  by  adding  a  new  section
422-a to read as follows:
  S  422-A.  LOSS OF TAX-EXEMPT STATUS. NOTWITHSTANDING ANY PROVISION OF
LAW TO THE CONTRARY, ANY ORGANIZATION  THAT  DISCRIMINATES  AGAINST  ANY
PERSON,  GROUP,  ORGANIZATION  OR  OTHER  ENTITY  BASED ON RACE, WEIGHT,

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD10650-02-3

S. 5170                             2

NATIONAL ORIGIN, CREED, RELIGION, RELIGIOUS PRACTICES, MENTAL  OR  PHYS-
ICAL   DISABILITY,   SEX,  SEXUAL  ORIENTATION  OR  GENDER  IDENTITY  OR
EXPRESSION SHALL NOT BE ELIGIBLE FOR TAX-EXEMPT STATUS FOR  THE  PURPOSE
OF  ANY  TAXES,  FEES,  FINES,  PENALTIES, INTEREST OR OTHER ASSESSMENTS
IMPOSED PURSUANT TO THE PROVISIONS OF THIS CHAPTER;  PROVIDED  THAT  THE
PROVISIONS  OF  THIS SECTION SHALL NOT APPLY TO ANY VALIDLY INCORPORATED
RELIGIOUS  ORGANIZATION.    AS  USED  IN  THIS  SECTION,  "YOUTH  GROUP"
INCLUDES, BUT IS NOT LIMITED TO:  LITTLE LEAGUE, BOY SCOUTS, CUB SCOUTS,
GIRL  SCOUTS, YOUNG MEN'S CHRISTIAN ASSOCIATION, YOUNG WOMEN'S CHRISTIAN
ASSOCIATION, FUTURE FARMERS OF AMERICA, 4-H CLUBS, FUTURE BUSINESS LEAD-
ERS OF AMERICA, BOY'S CLUBS, GIRL'S CLUBS, SPECIAL OLYMPICS, INC., AMER-
ICAN YOUTH SOCCER ORGANIZATION AND POP WARNER FOOTBALL.
  S 3. If any section of this act or any part thereof shall be  adjudged
by  any  court  of  competent jurisdiction to be invalid, such judgement
shall not affect, impair  or  invalidate  the  remainder  or  any  other
section or part thereof.
  S 4. This act shall take effect immediately and shall apply to all tax
years commencing on and after January 1, 2014.

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