S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  8113--A
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               May 30, 2017
                                ___________
 
 Introduced by M. of A. TITONE -- read once and referred to the Committee
   on Ways and Means -- recommitted to the Committee on Ways and Means in
   accordance  with Assembly Rule 3, sec. 2 -- committee discharged, bill
   amended, ordered reprinted as amended and recommitted to said  commit-
   tee

 AN  ACT  to  amend  the tax law, in relation to exempting certain senior
   citizen organizations from paying sales and compensating use taxes
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1. Subdivision (a) of section 1116 of the tax law, as amended
 by chapter 530 of the laws of 1976, paragraph 4 as  amended  by  chapter
 270  of  the  laws of 2001, paragraph 5 as amended by chapter 366 of the
 laws of 1983, subparagraph (B) of paragraph 5 as amended by chapter  418
 of the laws of 2004, subparagraph (C) of paragraph 5 as amended by chap-
 ter  296 of the laws of 2006, paragraph 7 as added by chapter 903 of the
 laws of 1980, paragraph 8 as added by chapter 888 of the laws  of  1983,
 paragraph 9 as amended by chapter 591 of the laws of 2005, is amended to
 read as follows:
   (a)  Except  as otherwise provided in this section, any sale or amuse-
 ment charge by or to any of the following or any use or occupancy by any
 of the following shall not be subject to the sales and compensating  use
 taxes imposed under this article:
   (1)  The state of New York, or any of its agencies, instrumentalities,
 public corporations (including a public corporation created pursuant  to
 agreement or compact with another state or Canada) or political subdivi-
 sions  where  it  is  the  purchaser, user or consumer, or where it is a
 vendor of services or property of a kind not ordinarily sold by  private
 persons[;].
   (2)  The United States of America, and any of its agencies and instru-
 mentalities, insofar as it is immune  from  taxation  where  it  is  the
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD02975-03-7
              

 A. 8113--A                          2
 
 purchaser, user or consumer, or where it sells services or property of a
 kind not ordinarily sold by private persons[;].
   (3)  The United Nations or any international organization of which the
 United States of America is a member where it is the purchaser, user  or
 consumer,  or where it sells services or property of a kind not ordinar-
 ily sold by private persons[;].
   (4) Any corporation, association, trust,  or  community  chest,  fund,
 foundation,  or limited liability company, organized and operated exclu-
 sively for religious, charitable, scientific, testing for public safety,
 literary or educational purposes, or to foster national or international
 amateur sports competition (but  only  if  no  part  of  its  activities
 involve  the  provision of athletic facilities or equipment), or for the
 prevention of cruelty to children or animals, no part of the  net  earn-
 ings  of which inures to the benefit of any private shareholder or indi-
 vidual, no substantial part of the activities of which  is  carrying  on
 propaganda, or otherwise attempting to influence legislation, (except as
 otherwise  provided in subsection (h) of section five hundred one of the
 United States internal revenue code of nineteen hundred  fifty-four,  as
 amended),  and which does not participate in, or intervene in (including
 the publishing or distributing of statements), any political campaign on
 behalf of any candidate for public office[;].
   (5) A post or organization of past or present  members  of  the  armed
 forces  of  the  United States, or an auxiliary unit or society of, or a
 trust or foundation for, any such post or organization:
   (A) organized in this state,
   (B) at least seventy-five percent of the members of which are past  or
 present  members  of the armed forces of the United States as defined in
 section thirteen-a of the general construction law and substantially all
 of the other members of which are individuals  who  are  cadets  or  are
 spouses,  widows,  widowers, ancestors, or lineal descendants of past or
 present members of the armed forces of the United States or  of  cadets,
 and
   (C)  no part of the net earnings of which inures to the benefit of any
 private shareholder or individual.
   (6) The following Indian nations or tribes residing in New York state:
 Cayuga, Oneida, Onondaga, Poospatuck, Saint Regis Mohawk, Seneca,  Shin-
 necock,  Tonawanda  and  Tuscarora,  where  it is the purchaser, user or
 consumer.
   (7) A not-for-profit corporation operating  as  a  health  maintenance
 organization  subject  to  the  provisions  of article forty-four of the
 public health law.
   (8) Cooperative and foreign corporations doing business in this  state
 pursuant to the rural electric cooperative law.
   (9)  A  credit union, as defined in subdivision nine of section two of
 the banking law, where it is the purchaser, user, or consumer, or  where
 it  is a vendor of services or property of a kind not ordinarily sold by
 private persons.
   (10)  SENIOR  CITIZEN  ORGANIZATIONS  ORGANIZED  PURSUANT  TO  SECTION
 501(C)(3)  OR  SECTION 501(C)(7) OF THE INTERNAL REVENUE CODE (26 U.S.C.
 §501) WHICH LIMIT MEMBERSHIP TO MEMBERS AGE FIFTY AND OLDER,  AND  WHICH
 ARE  ORGANIZED  FOR  PLEASURE,  SOCIAL, EDUCATIONAL, RECREATIONAL AND/OR
 OTHER NON-PROFIT PURPOSES, PROVIDED:
   (A) NO PART OF THE NET EARNINGS OF WHICH INURE TO THE BENEFIT  OF  ANY
 PRIVATE SHAREHOLDER OR INDIVIDUAL;
   (B)  NO  SUBSTANTIAL  PART  OF  THE ACTIVITIES OF WHICH IS CARRYING ON
 PROPAGANDA, OR OTHERWISE ATTEMPTING TO INFLUENCE LEGISLATION, (EXCEPT AS

 A. 8113--A                          3
 
 OTHERWISE PROVIDED IN SUBSECTION (H) OF SECTION FIVE HUNDRED ONE OF  THE
 UNITED  STATES  INTERNAL REVENUE CODE OF NINETEEN HUNDRED FIFTY-FOUR, AS
 AMENDED), AND WHICH DOES NOT PARTICIPATE IN, OR INTERVENE IN  (INCLUDING
 THE PUBLISHING OR DISTRIBUTING OF STATEMENTS), ANY POLITICAL CAMPAIGN ON
 BEHALF OF ANY CANDIDATE FOR PUBLIC OFFICE; AND
   (C)  THE  EXEMPTION  APPLIES  ONLY  TO  PURCHASES THAT ARE MADE BY THE
 ORGANIZATION ITSELF AND NOT FOR PURCHASES BY ANY OF ITS MEMBERS INDIVID-
 UALLY.
   § 2. Subdivision (g) of section 1116 of the tax  law,  as  amended  by
 chapter 3 of the laws of 2004, is amended to read as follows:
   (g) For purposes of [paragraph] PARAGRAPHS five AND TEN of subdivision
 (a) of this section, duly authorized representatives of any such post or
 organization, while acting on behalf of such post or organization, shall
 not be subject to the tax imposed under subdivision (e) of section elev-
 en  hundred  five or the unit fee imposed by section eleven hundred four
 of this article, provided that such representatives  provide  an  exempt
 organization  certificate from such post or organization certifying that
 such representative is acting on its behalf.
   § 3. The commissioner  of  taxation  and  finance  is  authorized  and
 directed to develop and place into effect all rules and regulations, and
 take  all  other measures necessary, to implement the provisions of this
 act on or before its effective  date,  including,  but  not  limited  to
 making all necessary changes to the "Application for an Exempt Organiza-
 tion  Certificate"  (Form ST-119.2) and any other forms utilized by tax-
 exempt entities.
   § 4. This act shall take effect January 1, 2019.