Senate Bill S8475

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8475
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                              August 13, 2025
                                ___________
 
 Introduced  by  Sen. SKOUFIS -- read twice and ordered printed, and when
   printed to be committed to the Committee on Rules
 
 AN ACT to amend the tax law and the real property tax law,  in  relation
   to  eliminating nonprofit tax exemptions for entities engaged in poli-
   tical activity

   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 27-a to read
 as follows:
   §  27-A. SUSPENSION OF TAX-EXEMPT STATUS FOR POLITICAL CAMPAIGN ACTIV-
 ITY.  1. DEFINITIONS. FOR THE PURPOSES OF THIS  SECTION,  THE  FOLLOWING
 TERMS SHALL HAVE THE FOLLOWING MEANINGS:
   (A)  THE  TERM "NONPROFIT ORGANIZATION" MEANS ANY CORPORATION, ASSOCI-
 ATION, TRUST, COMMUNITY CHEST, FUND, FOUNDATION,  OR  LIMITED  LIABILITY
 COMPANY ORGANIZED AND OPERATED EXCLUSIVELY FOR RELIGIOUS, CHARITABLE, OR
 EDUCATIONAL  PURPOSES,  OR  FOR THE PREVENTION OF CRUELTY TO CHILDREN OR
 ANIMALS, AND NO PART OF THE NET EARNINGS OF WHICH INURES TO THE  BENEFIT
 OF ANY PRIVATE SHAREHOLDER OR INDIVIDUAL.
   (B)  THE  TERM "POLITICAL CAMPAIGN ACTIVITY" MEANS ANY ACTION COMMUNI-
 CATION OR EXPENDITURE WHICH CONSTITUTES PARTICIPATION  OR  INTERVENTION,
 DIRECTLY  OR  INDIRECTLY,  IN  ANY POLITICAL CAMPAIGN ON BEHALF OF OR IN
 OPPOSITION TO ANY CANDIDATE FOR OFFICE.
   (C) THE TERM "CANDIDATE FOR PUBLIC OFFICE"  MEANS  AN  INDIVIDUAL  WHO
 OFFERS  THEMSELF,  OR  IS  PROPOSED  BY  OTHERS,  AS  A CONTESTANT FOR A
 NATIONAL, STATE, OR LOCAL ELECTIVE PUBLIC OFFICE, WHETHER SUCH OFFICE IS
 TO BE FILLED AT A PRIMARY, GENERAL OR SPECIAL  ELECTION.  AN  INDIVIDUAL
 SHALL  BE  DEEMED  A CANDIDATE FOR THE PURPOSES OF THIS ARTICLE UPON THE
 OCCURRENCE OF ANY OF THE ACTIONS SPECIFIED IN SUBDIVISION ONE OF SECTION
 14-100 OF THE ELECTION LAW.
   (D) THE TERM "CONTRIBUTION" SHALL HAVE THE MEANING SET FORTH IN SUBDI-
 VISION NINE OF SECTION 14-100 OF THE ELECTION LAW.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD13564-02-5
              

 S. 8475                             2
 
   (E) NOTWITHSTANDING THE DEFINITIONS SET FORTH IN THE ELECTION LAW, THE
 TERM "EXPENDITURE" MEANS ANY DISBURSEMENT OF THE ORGANIZATION'S FUNDS OR
 USE OF ITS RESOURCES.
   2. PROHIBITED ACTIVITIES.  ANY EXEMPTION FROM ONE OR MORE TAXES, FEES,
 OR  IMPOSITIONS  CODIFIED IN THIS CHAPTER THAT IS AVAILABLE TO NONPROFIT
 ORGANIZATIONS SHALL NOT BE AVAILABLE  TO  SUCH  NONPROFIT  ORGANIZATIONS
 THAT  ENGAGE  IN POLITICAL ACTIVITY. THE FOLLOWING ACTIVITIES ARE PER SE
 VIOLATIONS OF THIS PROHIBITION, BUT THE ABSENCE OF ONE OF  THESE  ACTIV-
 ITIES  DOES  NOT  PRECLUDE A FINDING THAT AN ORGANIZATION HAS ENGAGED IN
 POLITICAL CAMPAIGN ACTIVITY  BASED  ON  ALL  OTHER  RELEVANT  FACTS  AND
 CIRCUMSTANCES:
   (A)  MAKING,  SOLICITING, OR FACILITATING, DIRECTLY OR INDIRECTLY, ANY
 CONTRIBUTION TO OR FOR THE BENEFIT OF ANY CANDIDATE FOR PUBLIC  OFFICE'S
 AUTHORIZED POLITICAL COMMITTEE OR POLITICAL PARTY.
   (B)  PUBLISHING  OR  DISTRIBUTING,  BY  ANY  MEDIUM, INCLUDING BUT NOT
 LIMITED TO WRITTEN, ELECTRONIC OR ORAL STATEMENTS, THAT EXPRESSLY  ADVO-
 CATE  FOR  THE  ELECTION OR DEFEAT OF A CLEARLY IDENTIFIED CANDIDATE FOR
 PUBLIC OFFICE.
   (C) USING OR PERMITTING THE USE OF THE ORGANIZATION'S ASSETS,  FACILI-
 TIES,  STAFF,  MAILING  LISTS, WEBSITES OR OTHER RESOURCES TO SUPPORT OR
 OPPOSE A CANDIDATE FOR PUBLIC OFFICE,  EXCEPT  AS  EXPLICITLY  PERMITTED
 UNDER THE SAFE HARBOR PROVISIONS IN SUBDIVISION FOUR OF THIS SECTION.
   3.  PERMISSIBLE  ACTIVITIES.  THE  TERM  "POLITICAL CAMPAIGN ACTIVITY"
 SHALL NOT INCLUDE:
   (A) ENGAGING IN LOBBYING OR ADVOCATING FOR THE ADOPTION  OR  REJECTION
 OF  LEGISLATION,  PROVIDED SUCH COMMUNICATION DOES NOT, BASED ON ALL THE
 FACTS AND CIRCUMSTANCES, CONSTITUTE PARTICIPATION OR INTERVENTION  IN  A
 POLITICAL CAMPAIGN.
   (B) CONDUCTING NON-PARTISAN ANALYSIS, STUDY OR RESEARCH AND MAKING THE
 RESULTS THEREOF AVAILABLE TO THE PUBLIC, EVEN IF SUCH ANALYSIS, STUDY OR
 RESEARCH MAY AFFECT PUBLIC PERCEPTION OF A CANDIDATE FOR PUBLIC OFFICE.
   (C)  PROVIDING NON-PARTISAN VOTER EDUCATION, INCLUDING THE PUBLICATION
 OF VOTER GUIDES OR THE HOSTING OF CANDIDATE FORUMS, PROVIDED SUCH ACTIV-
 ITIES ARE CONDUCTED IN A NEUTRAL, UNBIASED MANNER  CONSISTENT  WITH  THE
 REQUIREMENTS OF SUBDIVISION FOUR OF THIS SECTION.
   (D)  ENCOURAGING  PARTICIPATION  IN THE ELECTORAL PROCESS THROUGH NON-
 PARTISAN VOTER REGISTRATION AND GET-OUT-THE-VOTE DRIVES.
   4. SAFE HARBORS. AN ORGANIZATION SHALL NOT BE DEEMED TO  HAVE  ENGAGED
 IN  PROHIBITED  POLITICAL  CAMPAIGN  ACTIVITY SOLELY ON THE BASIS OF THE
 FOLLOWING ACTIVITIES, PROVIDED THE SPECIFIED CONDITIONS ARE MET:
   (A) CANDIDATE APPEARANCES. HOSTING A CANDIDATE FOR  PUBLIC  OFFICE  TO
 SPEAK  OR  APPEAR AT AN EVENT, PROVIDED THAT: (I) IF ONE CANDIDATE FOR A
 SPECIFIC OFFICE IS INVITED TO SPEAK, ALL OTHER LEGALLY QUALIFIED  CANDI-
 DATES FOR THAT SAME OFFICE ARE INVITED AND AFFORDED AN EQUAL OPPORTUNITY
 TO PARTICIPATE; (II) THE ORGANIZATION DOES NOT, IN ITS COMMUNICATIONS OR
 AT  THE  EVENT, INDICATE ANY SUPPORT FOR OR OPPOSITION TO ANY CANDIDATE;
 AND (III) NO POLITICAL FUNDRAISING OCCURS AT THE EVENT OR IN  CONNECTION
 WITH IT.
   (B)  USE  OF  FACILITIES, GOODS OR SERVICES. RENTING ITS FACILITIES OR
 PROVIDING GOODS OR SERVICES TO  A  CANDIDATE,  PROVIDED  THAT:  (I)  THE
 FACILITIES,  GOODS  OR SERVICES ARE MADE AVAILABLE TO ALL CANDIDATES FOR
 THE SAME OFFICE ON THE SAME BASIS AND FOR A FEE THAT IS  AT  LEAST  FAIR
 MARKET  VALUE;  AND  (II)  THE  PROVISION  OF  SUCH FACILITIES, GOODS OR
 SERVICES IS IN THE  ORDINARY  COURSE  OF  THE  ORGANIZATION'S  REGULARLY
 CONDUCTED ACTIVITIES.
 S. 8475                             3
 
   (C)  WEBSITE  CONTENT. MAINTAINING A WEBSITE THAT PROVIDES INFORMATION
 ABOUT OR LINKS TO CANDIDATES FOR PUBLIC OFFICE, PROVIDED THAT:  (I)  THE
 INFORMATION  OR  LINKS ARE PROVIDED FOR ALL LEGALLY QUALIFIED CANDIDATES
 FOR A PARTICULAR OFFICE; (II) THE  PRESENTATION  OF  ALL  CANDIDATES  IS
 NEUTRAL  AND  UNBIASED  IN  FORMAT  AND CONTENT; AND (III) ANY LINK TO A
 CANDIDATE'S CAMPAIGN WEBSITE IS PRESENTED IN  A  MANNER  THAT  DOES  NOT
 INDICATE SUPPORT OR OPPOSITION.
   §  2.  Subdivision  1 of section 420-a of the real property tax law is
 amended by adding a new paragraph (c) to read as follows:
   (C) REAL PROPERTY SUCH AS SPECIFIED IN PARAGRAPH (A) OF THIS  SUBDIVI-
 SION  SHALL  NOT  BE EXEMPT IF ANY PORTION IS USED BY THE CORPORATION OR
 ASSOCIATION TO ENGAGE IN  POLITICAL  CAMPAIGN  ACTIVITY  AS  DEFINED  IN
 SECTION TWENTY-SEVEN-A OF THE TAX LAW.
   §  3.  Subdivision  1 of section 420-b of the real property tax law is
 amended by adding a new paragraph (d) to read as follows:
   (D) REAL PROPERTY SUCH AS SPECIFIED IN PARAGRAPH (A) OF THIS  SUBDIVI-
 SION  SHALL  NOT  BE EXEMPT IF ANY PORTION IS USED BY THE CORPORATION OR
 ASSOCIATION TO ENGAGE IN  POLITICAL  CAMPAIGN  ACTIVITY  AS  DEFINED  IN
 SECTION TWENTY-SEVEN-A OF THE TAX LAW.
   § 4. Paragraph 4 of subdivision (a) of section 1116 of the tax law, as
 amended  by  chapter  407  of  the laws of 2019, is amended   to read as
 follows:
   (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 or in opposition to  any  candidate  for  public  office.  The
 provisions of this paragraph regarding political campaign activity shall
 be  interpreted  in  the same manner as section [501(c)(3) of the United
 States internal revenue code has been interpreted as  of  the  effective
 date  of  the  chapter of the laws of two thousand nineteen that amended
 this paragraph] TWENTY-SEVEN-A OF THIS CHAPTER;
   § 5. The department of taxation and finance shall establish rules  and
 regulations to administer and enforce the provisions of this act.
   § 6. This act shall take effect immediately.