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

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.