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This entry was published on 2014-09-22
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Suspension of tax-exempt status of terrorist organizations
§ 27. Suspension of tax-exempt status of terrorist organizations. 1.
An organization that is removed from the tax-exempt organizations list
by the internal revenue service pursuant to subsection (p) of section
501 of title 26 of the United States Code shall not be exempt from any
tax, fee or other imposition administered by the commissioner, and it
shall also not be an exempt organization with respect to any sale,
transfer or assignment, beginning on the later of November eleventh, two
thousand three, or the date that the internal revenue service publishes
revocation of the organization's tax-exempt status. In the case of any
personal income or corporate franchise tax imposed under or pursuant to
the authority of this chapter, such revocation of exempt status shall
apply with respect to the entire taxable year in which the date of
revocation occurs and to subsequent taxable years.

2. An organization whose tax-exempt status has been revoked pursuant
to subdivision one of this section and whose tax-exempt status is later
restored by the internal revenue service shall be required to submit a
new application or applications and be approved before any such status
shall be restored with respect to any such tax, fee or other imposition
administered by the commissioner.

3. An organization whose tax-exempt status is suspended pursuant to
subdivision one of this section 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, provided that
the organization cannot challenge the merits of the determination made
by the internal revenue service.

4. If an organization makes a sale of property or services on or after
the date its exempt status has been revoked under subdivision one of
this section, such sale shall be taxable; and the organization shall be
required to collect, pay or pay over any tax due on any such sale on or
after such date. If such organization fails to collect tax on any such
sale, the purchaser shall owe any tax due and shall pay it directly to
the commissioner in accordance with applicable law; provided, however,
that, if such purchaser does not have knowledge that such organization's
exempt status has been revoked, then such purchaser shall not be liable
for any penalty or interest for failing to file a return or to pay such
tax if such purchaser files such a return and pays such tax due within
thirty days of the date that such purchaser learns that the tax is owed
on such purchase.