N.Y. Tax Law § 13: Exemption from taxation for victims or targets of Nazi persecution

§ 13. (a) Exemption from taxation for victims or targets of Nazi

persecution. Notwithstanding any provision of law to the contrary,

amounts received (including accumulated interest) by victims or targets

of Nazi persecution from an eligible settlement fund, or from an

eligible grantor trust established for the benefit of such victims or

targets as set forth in this section, whether or not includable in

income for federal income tax purposes, shall be exempt from all state

and local taxes imposed on or measured by income. Provided however, that

this exemption shall not apply to amounts received from assets acquired

with such assets or with the proceeds from the sale of such assets. For

the purposes of this section, "victims or targets of Nazi persecution"

means any individual, corporation, partnership, sole proprietorship,

unincorporated association, community, congregation, group,

organization, or other entity persecuted or targeted for persecution by

the Nazi Regime because of race, religion, ethnicity, sexual

orientation, national origin, or physical or mental disability or

handicap, or the heirs, successors, administrators, executors,

affiliates, or assignees of such victims or targets, or any other

claimant receiving funds from an eligible settlement fund, or from an

eligible grantor trust established for the benefit of such victims or

targets. An eligible settlement fund is an entity that is treated for

federal income tax purposes as a designated or qualified settlement

fund, as such term is defined in section 468B of the internal revenue

code and the regulations thereunder, which is established for the

principal purpose of resolving and satisfying claims arising from or in

connection with any act or omission in any way relating to the

Holocaust, World War II and its prelude and aftermath, victims or

targets of Nazi persecution, transactions with or actions of the Nazi

Regime, or treatment of refugees fleeing Nazi persecution by or in the

Swiss Confederation. An eligible grantor trust is a grantor trust which

is established for the principal purpose of resolving and satisfying

such claims.

(b) Exemption from taxation for qualified settlement funds established

for the benefit of victims or targets of Nazi persecution by or in the

Swiss Confederation. Notwithstanding any other provision of law to the

contrary, an entity that is treated for federal income tax purposes as a

designated or qualified settlement fund, as such term is defined in

section 468B of the internal revenue code and the regulations

thereunder, or a grantor trust, either of which is established for the

principal purpose of resolving and satisfying claims arising from or in

connection with any act or omission in any way relating to the

Holocaust, World War II and its prelude and aftermath, victims or

targets of Nazi persecution, transactions with or actions of the Nazi

Regime, treatment of refugees fleeing Nazi persecution, by or in the

Swiss Confederation, shall be exempt from all taxes imposed on or

measured by income, the commercial rent tax imposed by the city of New

York and all sales and use taxes whether imposed by the State or any

local jurisdiction or municipality.