§ 12-03 Exemptions.
RCNY § 12-03
The following persons are exempt from the tax: (a) The State of New York, or any public corporation (including a public corporation created pursuant to agreement or compact with another state or the Dominion of Canada), improvement district or other political subdivision of the State; the United States of America, insofar as it is immune from taxation; the United Nations or other worldwide international organizations of which the United States of America is a member.
(b)Any corporation, or association, or trust, or community chest, fund or foundation, organized and operated exclusively for religious, charitable, or educational purposes, or for the prevention of cruelty to children or animals, and no part of the net earnings of which inures to the benefit of any private shareholder or individual, and no substantial part of the activities of which is carrying on propaganda, or otherwise attempting to influence legislation; provided, however, that nothing in this subdivision (b) shall include an organization operated for the primary purpose of carrying on a trade or business for profit, whether or not all of its profits are payable to one or more organizations described in this subdivision (b).
(c)Where any organization described in subdivision (b) above, carries on its activities in furtherance of any of the purposes for which it was organized, in premises in which, as part of said activities, it operates a hotel, occupancy of rooms in said premises and rents therefrom received by such organization are not subject to the tax. An organization claiming exemption under subdivisions (b) and (c) above must make application for such exemption to the Commissioner of Finance and is required to submit to the Commissioner of Finance such information as will enable the Commissioner to rule upon the applicant's status. The Commissioner, if satisfied that the applicant is entitled to the exemption, will issue a letter of exemption to the applicant. An applicant for exemption is required to submit an affidavit which shall set forth the following: (1) The type of organization, (2) The purposes for which it is organized, (3) Its actual activities, (4) The source and disposition of its income, (5) Whether or not any of its income is credited to surplus or may inure to any private stockholder or individual, and (6) Such other facts which may affect its right to exemption. The affidavit must be supplemented by a copy of the articles of incorporation, or articles of association, as the case may be, a copy of the by-laws of the organization, a financial statement showing its assets and liabilities for the most recent year, and a photostatic copy of the letter, if any, from the United States Treasury Department granting the organization exemption from Federal income taxation. An organization which is an occupant of a hotel room and claims exemption from tax on such occupancy must furnish a copy of the letter of exemption to the hotel operator when claiming such exemption. Where the occupancy is by an agent, representative, or employee of the organization, a certificate, on the form prescribed by the Commissioner, certifying that the occupancy is solely for official purposes and that the rent has or will be paid by the organization, must be furnished to the operator.
