§ 27 — Suspension of tax-exempt status of terrorist organizations

§ 27. Suspension of tax-exempt status of terrorist organizations. 1.\nAn organization that is removed from the tax-exempt organizations list\nby the internal revenue service pursuant to subsection (p) of section\n501 of title 26 of the United States Code shall not be exempt from any\ntax, fee or other imposition administered by the commissioner, and it\nshall also not be an exempt organization with respect to any sale,\ntransfer or assignment, beginning on the later of November eleventh, two\nthousand three, or the date that the internal revenue service publishes\nrevocation of the organization's tax-exempt status. In the case of any\npersonal income or corporate franchise tax imposed under or pursuant to\nthe authority of this chapter, such revocation of exempt status shall\napply with respect to the entire taxable year in which the date of\nrevocation occurs and to subsequent taxable years.\n 2. An organization whose tax-exempt status has been revoked pursuant\nto subdivision one of this section and whose tax-exempt status is later\nrestored by the internal revenue service shall be required to submit a\nnew application or applications and be approved before any such status\nshall be restored with respect to any such tax, fee or other imposition\nadministered by the commissioner.\n 3. An organization whose tax-exempt status is suspended pursuant to\nsubdivision one of this section shall have the right to appeal the\ndetermination using the procedure prescribed by article forty of this\nchapter or otherwise prescribed pursuant to this chapter, provided that\nthe organization cannot challenge the merits of the determination made\nby the internal revenue service.\n 4. If an organization makes a sale of property or services on or after\nthe date its exempt status has been revoked under subdivision one of\nthis section, such sale shall be taxable; and the organization shall be\nrequired to collect, pay or pay over any tax due on any such sale on or\nafter such date. If such organization fails to collect tax on any such\nsale, the purchaser shall owe any tax due and shall pay it directly to\nthe commissioner in accordance with applicable law; provided, however,\nthat, if such purchaser does not have knowledge that such organization's\nexempt status has been revoked, then such purchaser shall not be liable\nfor any penalty or interest for failing to file a return or to pay such\ntax if such purchaser files such a return and pays such tax due within\nthirty days of the date that such purchaser learns that the tax is owed\non such purchase.\n