New York S 6968: Relates to the tax exempt status of not-for-profit corporations or members convicted of criminal facilitation

Bill Text

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S06968 Summary:

BILL NOS06968 

&nbsp

SAME ASNo Same As

&nbsp

SPONSORLANZA

&nbsp

COSPNSR

&nbsp

MLTSPNSR

&nbsp

Amd §§208 & 1116, Tax L; amd §§420-a & 420-b, RPT L

&nbsp

Removes the tax exempt status of not-for-profit corporations for convictions of criminal facilitation of the organization or its officers, members or employees.

Go to top S06968 Actions:

BILL NOS06968 

&nbsp

03/27/2025REFERRED TO BUDGET AND REVENUE

01/07/2026REFERRED TO BUDGET AND REVENUE

Go to topS06968 Committee&nbspVotes:

Go to topS06968 Floor&nbspVotes:

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

Go to topS06968 Text:

 STATE OF NEW YORK
 ________________________________________________________________________

 6968

 2025-2026 Regular Sessions

 IN SENATE

 March 27, 2025
 ___________

 Introduced by Sen. LANZA -- read twice and ordered printed, and when
 printed to be committed to the Committee on Budget and Revenue

 AN ACT to amend the tax law and the real property tax law, in relation
 to removing the tax exempt status of not-for-profit corporations for
 convictions of criminal facilitation of the organization or its offi-
 cers, members or employees

 The People of the State of New York, represented in Senate and Assem-
 bly, do enact as follows:

 1 Section 1. Section 208 of the tax law is amended by adding a new
 2 subdivision 9-a to read as follows:
 3 9-a. Notwithstanding the provisions of subdivision nine of this
 4 section, the term "entire net income" means total net income from all
 5 sources which the taxpayer, in the case of a corporation which is exempt
 6 from federal income tax pursuant to section 501 (c) (3) of the internal
 7 revenue code, would have been required to report to the United States
 8 treasury department, if such taxpayer or any officer, member or employee
 9 thereof shall be convicted of criminal facilitation under article one
 10 hundred fifteen of the penal law.
 11 § 2. Paragraph (b) of subdivision 1 of section 420-a of the real prop-
 12 erty tax law, as amended by chapter 919 of the laws of 1981, is amended
 13 to read as follows:
 14 (b) Real property such as specified in paragraph (a) of this subdivi-
 15 sion shall not be exempt if any officer, member or employee of the
 16 owning corporation or association shall receive or may be lawfully enti-
 17 tled to receive any pecuniary profit from the operations thereof, except
 18 reasonable compensation for services in effecting one or more of such
 19 purposes, or as proper beneficiaries of its strictly charitable
 20 purposes; or if the organization thereof for any such avowed purposes be
 21 a guise or pretense for directly or indirectly making any other pecuni-
 22 ary profit for such corporation or association or for any of its members
 23 or employees; or if it be not in good faith organized or conducted

 EXPLANATION--Matter in italics (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD11233-02-5

 S. 6968 2

 1 exclusively for one or more of such purposes; or if the owning corpo-
 2 ration or association or any officer, member or employee thereof shall
 3 be convicted of criminal facilitation under article one hundred fifteen
 4 of the penal law.
 5 § 3. Paragraph (c) of subdivision 1 of section 420-b of the real prop-
 6 erty tax law, as added by chapter 919 of the laws of 1981, is amended to
 7 read as follows:
 8 (c) Real property such as specified in paragraph (a) of this subdivi-
 9 sion shall not be exempt if any officer, member or employee of the
 10 owning corporation or association shall receive any pecuniary profit
 11 from the operations thereof, except reasonable compensation for services
 12 in effecting one or more of such purposes, or as proper beneficiaries of
 13 its strictly charitable purposes; or if the organization thereof for any
 14 such avowed purposes be a guise or pretense for directly or indirectly
 15 making any other pecuniary profit for such corporation or association or
 16 for any of its members or employees; or if it be not in good faith
 17 organized exclusively for one or more of such purposes; or if the owning
 18 corporation or association or any officer, member or employee thereof
 19 shall be convicted of criminal facilitation under article one hundred
 20 fifteen of the pena