27 - Suspension of tax-exempt status of terrorist organizations.

§  27.  Suspension of tax-exempt status of terrorist organizations. 1.  An organization that is removed from the tax-exempt  organizations  list  by  the  internal  revenue service pursuant to subsection (p) of section  501 of title 26 of the United States Code shall not be exempt  from  any  tax,  fee  or  other imposition administered by the commissioner, and it  shall also not be an exempt  organization  with  respect  to  any  sale,  transfer or assignment, beginning on the later of November eleventh, two  thousand  three, or the date that the internal revenue service publishes  revocation of the organization's tax-exempt status. In the case  of  any  personal  income or corporate franchise tax imposed under or pursuant to  the authority of this chapter, such revocation of  exempt  status  shall  apply  with  respect  to  the  entire  taxable year in which the date of  revocation occurs and to subsequent taxable years.    2. An organization whose tax-exempt status has been  revoked  pursuant  to  subdivision one of this section and whose tax-exempt status is later  restored by the internal revenue service shall be required to  submit  a  new  application  or applications and be approved before any such status  shall be restored with respect to any such tax, fee or other  imposition  administered by the commissioner.    3.  An  organization  whose tax-exempt status is suspended pursuant to  subdivision one of this section shall  have  the  right  to  appeal  the  determination  using  the  procedure prescribed by article forty of this  chapter or otherwise prescribed pursuant to this chapter, provided  that  the  organization  cannot challenge the merits of the determination made  by the internal revenue service.    4. If an organization makes a sale of property or services on or after  the date its exempt status has been revoked  under  subdivision  one  of  this  section, such sale shall be taxable; and the organization shall be  required to collect, pay or pay over any tax due on any such sale on  or  after  such  date. If such organization fails to collect tax on any such  sale, the purchaser shall owe any tax due and shall pay it  directly  to  the  commissioner  in accordance with applicable law; provided, however,  that, if such purchaser does not have knowledge that such organization's  exempt status has been revoked, then such purchaser shall not be  liable  for  any penalty or interest for failing to file a return or to pay such  tax if such purchaser files such a return and pays such tax  due  within  thirty  days of the date that such purchaser learns that the tax is owed  on such purchase.