A general principle of taxation is that tax exempt status is narrowly construed. To substantiate tax exempt status, one must typically point to a specific provision of law conferring exempt status.
New York Tax Law regulation, 20 NYCRR §1-3.4 (b)(6), provides an exemption for: (6) corporations organized other than for profit corporation which do not have stock or shares or certificates for stock or for shares and which are operated on a nonprofit basis no part of the net earnings of which inures to the benefit of any officer, director, or member, including Not-for-Profit Corporations and Religious Corporations. This paragraph is further qualified by the following subparagraph: (i) A corporation organized other than for profit, as described in this paragraph, which is exempt from Federal income taxation pursuant to subsection (a) of section 501 of the Internal Revenue Code, will be presumed to be exempt from tax under article 9-A. If a corporation organized other than for profit is denied exemption from taxation under the Internal Revenue Code, such corporation will be presumed subject to tax under article 9-A.
