BILL NUMBER: S8475
SPONSOR: SKOUFIS
 
TITLE OF BILL:
An act to amend the tax law and the real property tax law, in relation
to eliminating nonprofit tax exemptions for entities engaged in poli-
tical activity
 
PURPOSE:
To clarify that any tax exemptions available to nonprofit organizations
shall be revoked if such nonprofit organizations engage in political
campaign activity
 
SUMMARY OF PROVISIONS:
Section 1: Amends the tax law by adding a new section 27-a. Defines
terms such as "nonprofit organization," "political campaign activity,"
"candidate for public office," "contribution," and "expenditure." This
section also identifies specific "prohibited activities" that would
disqualify nonprofits from receiving certain tax exemptions. Further,
this section identifies permissible activities, which shall not be
considered political campaign activities.
Section 2: Amends subdivision 1 of section 420-a of the real property
tax law by adding a new paragraph c stating that real property defined
in paragraph a of this subdivision shall not be exempt from taxes if the
organization is engaging in political campaign activity.
Section 3: Amends Subdivision 1 of section 420-b of the real property
tax law, stating that real property specified in paragraph (a) of the
subdivision shall not be tax exempt if any portion of the organization
is engaging in political campaign activity.
Section 4: Amends paragraph 4 of subdivision (a) of section 1116 of the
tax law, stating that a nonprofit of any kind shall not engage in poli-
tical campaign activity as it is defined in Section 1 of this bill.
Section 5: States that the Department of Taxation and Finance shall
establish rules and regulations to administer and enforce the provisions
of this act.
Section 6: Sets effective date.
 
JUSTIFICATION:
The Johnson Amendment is a U.S. tax code provision, added in 1954, that
prohibits 501(c)(3) nonprofit organizations, including charities and
religious institutions, from endorsing or opposing political candidates.
If a nonprofit engages in such political activities, it risks losing its
tax-exempt status.
In July of 2025, the IRS re-interpreted the Johnson Amendment, allowing
churches to endorse political candidates from the pulpit. This change,
made through a legal settlement, effectively dismantles a key part of
the law, potentially opening the door to the politicization of religious
organizations that receive tax exemptions from the government.
This bill reinforces the principle behind th6 Johnson Amendment (that
tax-exempt nonprofit organizations must remain nonpartisan in electoral
politics) by clarifying that any nonprofit engaging in political
campaign activity shall lose its state tax exemptions.
 
LEGISLATIVE HISTORY:
New Bill.
 
FISCAL IMPLICATIONS:
None.
 
EFFECTIVE DATE:
This act shall take effect immediately.

Statutes affected:
S8475: 420-a real property tax law, 420-a(1) real property tax law, twenty-seven-a tax law, 1116 tax law