N.Y. Tax Law § 27: 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 An organization whose tax-exempt status has been revoked pursuant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the date its exempt status has been revoked under subdivision one of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exempt status has been revoked, then such purchaser shall not be liable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.