Assembly Bill A3271A

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

                                 3271--A

                       2015-2016 Regular Sessions

                          I N  A S S E M B L Y

                            January 22, 2015
                               ___________

Introduced  by  M. of A. McDONALD, MOSLEY, CRESPO, RAIA, STECK, LAWRENCE
  -- Multi-Sponsored by -- M. of A. HOOPER, PERRY, RAMOS  --  read  once
  and  referred to the Committee on Ways and Means -- recommitted to the
  Committee on Ways and Means in accordance with Assembly Rule 3, sec. 2
  -- committee discharged, bill amended, ordered  reprinted  as  amended
  and recommitted to said committee

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

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD02571-03-6
              

A. 3271--A                          2

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[;].
  (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

A. 3271--A                          3

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
  (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, 2017.