Bill S5170A-2013

Denies tax-exempt status to any organization that discriminates against any person, group, organization or other entity based on sexual orientation or gender identity or expression

Denies tax-exempt status to any organization that discriminates against any person, group, organization or other entity based on sexual orientation or gender identity or expression.

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  • Apr 7, 2014: PRINT NUMBER 5170A
  • Apr 7, 2014: AMEND AND RECOMMIT TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • Jan 8, 2014: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • May 13, 2013: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS

Memo

BILL NUMBER:S5170A

TITLE OF BILL: An act to amend the tax law and the real property tax law, in relation to denying tax-exempt status to any organization that discriminates against any person, group, organization or other entity based on sexual orientation or gender identity or expression

SUMMARY OF PROVISIONS:

Section One amend the tax law adding a new section 41 to read that notwithstanding any provision of law to the contrary, any organization that discriminates against any person, group, youth group, organization or other entity based on race, weight, national origin, creed religion, religious practices, mental or physical disability, sex, sexual orientation or gender identity or expression shall not be eligible for tax exempt statues for the purpose of any taxes, fees, fines, penalties, interest or other assessments. The bill furthers defines "youth group" to include, but not limited to, Little League, YMCA, YWCA. Future Farmers of America, 4-H Clubs, Girl Scouts, Boy Scouts, Cub Scouts, Future Business Leaders of America, Boys' Clubs, Girls Clubs, Special Olympics, American Youth Soccer Association and Pop Warner Football.

Section Two of the bill adds a new section 422-a to the Real Property Law to state that notwithstanding any provision of law to the contrary, any organization that discriminates against any person, group, youth group, organization or other entity based on race, weight, national origin, creed religion, religious practices, mental or physical disability, sex, sexual orientation or gender identity or expression shall not be eligible for tax exempt statues for the purpose of any taxes, fees, fines, penalties, interest or other assessments.

The bill furthers defines "youth, group" to include, but not limited to, Little League, Boy Scouts, YMCA, YWCA, Future Farmers of America, 4-H Clubs, Future Business Leaders of America, Boys' Clubs, Girls Clubs, Special Olympics, American Youth Soccer Association and Pop Warner Football.

Section Three is the Severability Clause

EXISTING LAW:

New Law.

JUSTIFICATION: This bill would deny tax-exempt status to youth groups that discriminate on the basis of sexual orientation or gender identity or expression.

New York has the proud distinction of being the first state in the nation to enact a Human Rights Law, which affords every citizen "an equal opportunity to enjoy a full and productive life." This law prohibits discrimination in employment, housing, credit, places of public accommodations, and non-sectarian educational institutions, based on age, race, national origin, sex, sexual orientation, marital status, disability, military status, and other specified classes. Any violation of this law is unacceptable and particularly damaging to

young people. Youth organizations that engage in discrimination in violation of the Human Rights Law should not be rewarded with tax-exempt status. Should this bill be enacted youth organizations that discriminate on the basis of gender identity or race, sexual orientation, nationality, religion or religious affiliation would have to pay corporate taxes on donations, membership dues, camp fees and other sources of income, as well as sales taxes on taxable items.

It has been more than ten years since New York State enacted the Sexual Orientation Non-Discrimination Act (SONDA), which added actual or perceived sexual orientation to the characteristics on which discrimination is prohibited in employment, housing, public accommodations, education, credit, and the exercise of civil rights. The United States Supreme Court narrowly ruled in Boy Scouts of America et al. v. Dale (June 2000) that youth organizations have a right to establish their own exclusionary membership criteria. However, this ruling does not entitle these organizations whose which may possess discriminatory membership policies contrary to longstanding state and local anti-discrimination laws to tax-exempt status.

Passage of this legislation would send a strong message about New York's commitment to civil rights. It should also be noted that religious organizations, as defined in New York State statute, would be exempt.

LEGISLATIVE HISTORY: New Bill

FISCAL IMPLICATIONS: None

LOCAL FISCAL IMPLICATIONS: None

EFFECTIVE DATE: This Act shall take effect immediately and shall aptly to all tax years commencing on or after January 1, 2015.


Text

STATE OF NEW YORK ________________________________________________________________________ 5170--A 2013-2014 Regular Sessions IN SENATE May 13, 2013 ___________
Introduced by Sen. HOYLMAN -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Govern- ment Operations -- recommitted to the Committee on Investigations and Government Operations in accordance with Senate Rule 6, sec. 8 -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee AN ACT to amend the tax law and the real property tax law, in relation to denying tax-exempt status to any organization that discriminates against any person, group, organization or other entity based on sexu- al orientation or gender identity or expression THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. The tax law is amended by adding a new section 41 to read as follows: S 41. LOSS OF TAX-EXEMPT STATUS. NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, ANY ORGANIZATION THAT DISCRIMINATES AGAINST ANY PERSON, GROUP, YOUTH GROUP, ORGANIZATION OR OTHER ENTITY BASED ON RACE, WEIGHT, NATIONAL ORIGIN, CREED, RELIGION, RELIGIOUS PRACTICES, MENTAL OR PHYS- ICAL DISABILITY, SEX, SEXUAL ORIENTATION OR GENDER IDENTITY OR EXPRESSION SHALL NOT BE ELIGIBLE FOR TAX-EXEMPT STATUS FOR THE PURPOSE OF ANY TAXES, FEES, FINES, PENALTIES, INTEREST OR OTHER ASSESSMENTS IMPOSED PURSUANT TO THE PROVISIONS OF THIS CHAPTER; PROVIDED THAT THE PROVISIONS OF THIS SECTION SHALL NOT APPLY TO ANY VALIDLY INCORPORATED RELIGIOUS ORGANIZATION. AS USED IN THIS SECTION, "YOUTH GROUP" INCLUDES, BUT IS NOT LIMITED TO: LITTLE LEAGUE, BOY SCOUTS, CUB SCOUTS, GIRL SCOUTS, YOUNG MEN'S CHRISTIAN ASSOCIATION, YOUNG WOMEN'S CHRISTIAN ASSOCIATION, FUTURE FARMERS OF AMERICA, 4-H CLUBS, FUTURE BUSINESS LEAD- ERS OF AMERICA, BOY'S CLUBS, GIRL'S CLUBS, SPECIAL OLYMPICS, INC., AMER- ICAN YOUTH SOCCER ORGANIZATION AND POP WARNER FOOTBALL. S 2. The real property tax law is amended by adding a new section 422-a to read as follows:
S 422-A. LOSS OF TAX-EXEMPT STATUS. NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, ANY ORGANIZATION THAT DISCRIMINATES AGAINST ANY PERSON, GROUP, ORGANIZATION OR OTHER ENTITY BASED ON RACE, WEIGHT, NATIONAL ORIGIN, CREED, RELIGION, RELIGIOUS PRACTICES, MENTAL OR PHYS- ICAL DISABILITY, SEX, SEXUAL ORIENTATION OR GENDER IDENTITY OR EXPRESSION SHALL NOT BE ELIGIBLE FOR TAX-EXEMPT STATUS FOR THE PURPOSE OF ANY TAXES, FEES, FINES, PENALTIES, INTEREST OR OTHER ASSESSMENTS IMPOSED PURSUANT TO THE PROVISIONS OF THIS CHAPTER; PROVIDED THAT THE PROVISIONS OF THIS SECTION SHALL NOT APPLY TO ANY VALIDLY INCORPORATED RELIGIOUS ORGANIZATION. AS USED IN THIS SECTION, "YOUTH GROUP" INCLUDES, BUT IS NOT LIMITED TO: LITTLE LEAGUE, BOY SCOUTS, CUB SCOUTS, GIRL SCOUTS, YOUNG MEN'S CHRISTIAN ASSOCIATION, YOUNG WOMEN'S CHRISTIAN ASSOCIATION, FUTURE FARMERS OF AMERICA, 4-H CLUBS, FUTURE BUSINESS LEAD- ERS OF AMERICA, BOY'S CLUBS, GIRL'S CLUBS, SPECIAL OLYMPICS, INC., AMER- ICAN YOUTH SOCCER ORGANIZATION AND POP WARNER FOOTBALL. S 3. If any section of this act or any part thereof shall be adjudged by any court of competent jurisdiction to be invalid, such judgement shall not affect, impair or invalidate the remainder or any other section or part thereof. S 4. This act shall take effect immediately and shall apply to all tax years commencing on and after January 1, 2015.

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