New York A 8583: Enacts the NY-PROTECT ACT; repealer

Bill Text

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 Speaker Carl E. Heastie

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A08583 Summary:

BILL NOA08583A

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SAME ASSAME AS S07880-A

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SPONSORGlick

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COSPNSRRosenthal, Simon, Hevesi

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MLTSPNSR

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Add §27-a, Tax L

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Allows an organization included on the federal list of tax-exempt organizations under section 501(c)(3) of title 26 of the United States code on March first, two thousand twenty-five to automatically maintain their tax-exempt status for New York state purposes; provides for the repeal of such provisions upon the expiration thereof.

Go to top A08583 Actions:

BILL NOA08583A

&nbsp

05/21/2025referred to ways and means

06/09/2025amend (t) and recommit to ways and means

06/09/2025print number 8583a

01/07/2026referred to ways and means

Go to topA08583 Committee&nbspVotes:

Go to topA08583 Floor&nbspVotes:

There are no Assembly votes for this bill in this legislative session.

Go to topA08583 Text:

 STATE OF NEW YORK
 ________________________________________________________________________

 8583--A

 2025-2026 Regular Sessions

 IN ASSEMBLY

 May 21, 2025
 ___________

 Introduced by M. of A. GLICK -- read once and referred to the Committee
 on Ways and Means -- committee discharged, bill amended, ordered
 reprinted as amended and recommitted to said committee

 AN ACT to amend the tax law, in relation to enacting 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:

 1 Section 1. This act shall be known and may be cited as the "NY-PROTECT
 2 ACT".
 3 § 2. The tax law is amended by adding a new section 27-a to read as
 4 follows:
 5 § 27-a. Improper suspension of tax-exempt status by the United States
 6 Internal Revenue Service. 1. Notwithstanding any state or local law,
 7 every organization designated by the Internal Revenue Service of the
 8 United States under section 501(c)(3) of the Internal Revenue Code as a
 9 tax-exempt organization as of January nineteenth, two thousand twenty-
 10 five shall automatically maintain their tax-exempt status for New York
 11 state purposes until the earlier of: (a) a determination by the commis-
 12 sioner pursuant to an application as provided by this section; or (b)
 13 January first, two thousand twenty-six.
 14 2. (a) Within ninety days of the effective date of this section, the
 15 commissioner shall establish a procedure or application allowing an
 16 organization that believes that the United States Internal Revenue
 17 Service illegally or improperly revoked its designation as a tax-exempt
 18 organization under section 501(c)(3) of the Internal Revenue Code to
 19 establish to the satisfaction of the commissioner that the organization
 20 meets the requirements of that section without regard to such revocation
 21 or federal status. The commissioner shall designate such organization as
 22 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.
 LBD11734-04-5

 A. 8583--A 2

 1 (b) The commissioner shall automatically designate an organization as
 2 a "state protected not-for-profit organization" if the organization
 3 provides to the commissioner a copy of a federal or state court ruling
 4 in effect holding that the United States Internal Revenue Service acted
 5 or likely acted illegally when it revoked the tax-exempt status of the
 6 organization, regardless of whether the United States Internal Revenue
 7 Service has complied with or is appealing such ruling.
 8 3. An organization whose request to be designated as a "state
 9 protected not-for-profit organization" is denied by the commissioner
 10 shall have the right to appeal the determination using the procedure
 11 prescribed by article forty of this chapter or otherwise prescribed
 12 pursuant to this chapter, and must, in such proceeding, challenge the
 13 merits of the determination made by the United States Internal Revenue
 14 Service.
 15 4. A "state protected not-for-profit organization" shall maintain its
 16 tax-exempt status under New York state and local law without regard to
 17 the change in its federal status. It shall, notwithstanding any other
 18 state or local law or rule, be treated as if it were an organ