S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8583
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               May 21, 2025
                                ___________
 
 Introduced  by M. of A. GLICK -- read once and referred to the Committee
   on Ways and Means
 
 AN ACT to amend the tax law, in  relation  to  enacting  the  "New  York
   Preventing  Revocation of Organizations' Tax-Exempt Classifications by
   Trump Act" or the "NY-PROTECT ACT"; and providing for  the  repeal  of
   such provisions upon expiration thereof

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. This act shall be known and may be cited as the  "New  York
 Preventing  Revocation  of  Organizations' Tax-Exempt Classifications by
 Trump Act" or the "NY-PROTECT ACT".
   § 2. The tax law is amended by adding a new section 27-a  to  read  as
 follows:
   §  27-A. IMPROPER SUSPENSION OF TAX-EXEMPT STATUS BY THE UNITED STATES
 INTERNAL REVENUE SERVICE. 1. NOTWITHSTANDING ANY  STATE  OR  LOCAL  LAW,
 EVERY  ORGANIZATION  DESIGNATED  BY  THE INTERNAL REVENUE SERVICE OF THE
 UNITED STATES UNDER SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE AS  A
 TAX-EXEMPT ORGANIZATION  AS OF JANUARY NINETEENTH, TWO THOUSAND  TWENTY-
 FIVE  SHALL  AUTOMATICALLY MAINTAIN THEIR TAX-EXEMPT STATUS FOR NEW YORK
 STATE PURPOSES UNTIL THE EARLIER OF: (A) A DETERMINATION BY THE  COMMIS-
 SIONER  PURSUANT  TO  AN APPLICATION AS PROVIDED BY THIS SECTION; OR (B)
 JANUARY FIRST, TWO THOUSAND TWENTY-SIX.
   2. (A) WITHIN NINETY DAYS OF THE EFFECTIVE DATE OF THIS  SECTION,  THE
 COMMISSIONER  SHALL  ESTABLISH  A  PROCEDURE  OR APPLICATION ALLOWING AN
 ORGANIZATION THAT BELIEVES  THAT  THE  UNITED  STATES  INTERNAL  REVENUE
 SERVICE  ILLEGALLY OR IMPROPERLY REVOKED ITS DESIGNATION AS A TAX-EXEMPT
 ORGANIZATION UNDER SECTION 501(C)(3) OF THE  INTERNAL  REVENUE  CODE  TO
 ESTABLISH  TO THE SATISFACTION OF THE COMMISSIONER THAT THE ORGANIZATION
 MEETS THE REQUIREMENTS OF THAT SECTION WITHOUT REGARD TO SUCH REVOCATION
 OR FEDERAL STATUS. THE COMMISSIONER SHALL DESIGNATE SUCH ORGANIZATION AS
 A "STATE PROTECTED NOT-FOR-PROFIT ORGANIZATION" UPON SUCH SATISFACTION.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD11734-02-5
              

 A. 8583                             2
 
   (B) THE COMMISSIONER SHALL AUTOMATICALLY DESIGNATE AN ORGANIZATION  AS
 A  "STATE  PROTECTED  NOT-FOR-PROFIT  ORGANIZATION"  IF THE ORGANIZATION
 PROVIDES TO THE COMMISSIONER A COPY OF A FEDERAL OR STATE  COURT  RULING
 IN  EFFECT HOLDING THAT THE UNITED STATES INTERNAL REVENUE SERVICE ACTED
 OR  LIKELY  ACTED ILLEGALLY WHEN IT REVOKED THE TAX-EXEMPT STATUS OF THE
 ORGANIZATION, REGARDLESS OF WHETHER THE UNITED STATES  INTERNAL  REVENUE
 SERVICE HAS COMPLIED WITH OR IS APPEALING SUCH RULING.
   3.  AN  ORGANIZATION  WHOSE  REQUEST  TO  BE  DESIGNATED  AS  A "STATE
 PROTECTED NOT-FOR-PROFIT ORGANIZATION" IS  DENIED  BY  THE  COMMISSIONER
 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, AND MUST, IN SUCH PROCEEDING, CHALLENGE THE
 MERITS OF THE DETERMINATION MADE BY THE UNITED STATES  INTERNAL  REVENUE
 SERVICE.
   4.  A "STATE PROTECTED NOT-FOR-PROFIT ORGANIZATION" SHALL MAINTAIN ITS
 TAX-EXEMPT STATUS UNDER NEW YORK STATE AND LOCAL LAW WITHOUT  REGARD  TO
 THE  CHANGE  IN  ITS FEDERAL STATUS. IT SHALL, NOTWITHSTANDING ANY OTHER
 STATE OR LOCAL LAW OR RULE, BE TREATED AS IF  IT  WERE  AN  ORGANIZATION
 DESIGNATED  AS  A  501(C)(3)  ORGANIZATION BY THE UNITED STATES INTERNAL
 REVENUE SERVICE IN RESPECT TO ANY TAX, FEE OR OTHER IMPOSITION  ADMINIS-
 TERED  BY  THE  COMMISSIONER;  AND  IN  RESPECT TO ANY SALE, TRANSFER OR
 ASSIGNMENT; AND IN RESPECT TO ANY TAX, FEE OR OTHER IMPOSITION  ADMINIS-
 TERED  BY  A  LOCAL  GOVERNMENT;  AND IN RESPECT TO ANY CONTRACT, GRANT,
 BENEFIT, LICENSE, OBLIGATION, QUALIFICATION, PROCEDURE OR PROGRAM ESTAB-
 LISHED OR OPERATED BY OR WITH THE STATE OR A LOCAL GOVERNMENT, INCLUSIVE
 OF ANY AGENCY, AUTHORITY OR SUBDIVISION THEREOF.
   5. (A) THE COMMISSIONER SHALL PROVIDE A DETERMINATION TO AN  ORGANIZA-
 TION  SATISFYING  THE  REQUIREMENTS  IMPOSED  BY SUBDIVISION TWO OF THIS
 SECTION WITH RESPECT TO A CERTIFICATION OF ITS DESIGNATION AS  A  "STATE
 PROTECTED  NOT-FOR-PROFIT ORGANIZATION" WITHIN THIRTY DAYS OF RECEIPT OF
 A COMPLETED APPLICATION.
   (B) NOTWITHSTANDING ANY STATE OR LOCAL  LAW,  RULE  OR  REGULATION  OR
 PROCEDURE,  THIS CERTIFICATION SHALL BE ACCEPTED IN LIEU OF ANY REQUIRE-
 MENT THAT AN ORGANIZATION PROVIDE DOCUMENTATION, OR OTHERWISE CERTIFY OR
 AFFIRM, THAT IT IS AN ORGANIZATION EXEMPT FROM  TAXATION  UNDER  SECTION
 501(C)(3) OF THE INTERNAL REVENUE CODE.
   (C)  THE  CERTIFICATION  SHALL  REMAIN  IN EFFECT UNTIL THE EARLIER OF
 EITHER APRIL FIFTEENTH OF  THE  YEAR  FOLLOWING  THE  ISSUANCE  OF  SUCH
 CERTIFICATE,  OR ONE YEAR AFTER THE DATE THAT THE UNITED STATES INTERNAL
 REVENUE SERVICE RESTORES THE DESIGNATION OF THE ORGANIZATION AS  TAX-EX-
 EMPT;  PROVIDED  THAT  THE  COMMISSIONER  MAY REVOKE THE CERTIFICATE AND
 DESIGNATION AT ANY TIME IF THE COMMISSIONER DETERMINES THAT  THE  ORGAN-
 IZATION:  (I) NO LONGER SATISFIES THE REQUIREMENTS SET FORTH IN SUBDIVI-
 SION TWO OF THIS SECTION; OR (II) PROVIDED FALSE INFORMATION MATERIAL TO
 THE DETERMINATION OF THE COMMISSIONER THAT  THE  ORGANIZATION  SATISFIED
 SUCH REQUIREMENTS.
   (D)  THE  COMMISSIONER MAY ESTABLISH A TRUNCATED APPLICATION OR PROCE-
 DURE TO ALLOW FOR THE RENEWAL OR RE-ISSUANCE OF SUCH CERTIFICATION.
   § 3. This act shall take effect immediately and  shall  be  deemed  to
 have  been  in  full force and effect on and after January 19, 2025, and
 shall expire and be deemed repealed January 20, 2029.