109 HR 6317 IH: To amend the Internal Revenue Code of 1986 to impose an U.S. House of Representatives 2006-11-13 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.

I 109th CONGRESS 2d Session H. R. 6317 IN THE HOUSE OF REPRESENTATIVES November 13, 2006 Mr. Gerlach introduced the following bill; which was referred to the Committee on Ways and Means A BILL To amend the Internal Revenue Code of 1986 to impose an excise tax on any tax-exempt organization which accepts any contribution which may be used to relocate property held by the organization if the relocation is contrary to the intent of the donor of the property.

1.

Excise tax penalty on tax-exempt organizations accepting contributions which may be used to relocate property held by the organization if the relocation is contrary to the intent of the donor of the property

(a)

In general

Chapter 41 of the Internal Revenue Code of 1986 (relating to public charities) is amended by adding at the end the following new section:

4913.

Tax on organizations accepting contributions which may be used to relocate property held by the organization if the relocation is contrary to the intent of the donor of the property

(a)

Tax imposed

(1)

In general

There is hereby imposed on the disqualified contributions of any organization to which this section applies a tax equal to 100 percent of the amount of such contributions. The tax imposed by this section shall be paid by the organization. (2)

Organizations to which section applies

This section shall apply to any organization described in section 501(c)(3) and exempt from tax under section 501(a) if such organization holds property— (A)which was donated to such organization (or any other organization so described), and (B)with respect to which there is written evidence of the donor’s intent that the property not be relocated from the site identified by the donor. (b)

Disqualified contribution

For purposes of this section, the term disqualified contribution means any contribution received by an organization unless the contribution is permanently set aside to carry out— (1)the exempt purposes of the organization with respect to property referred to in subsection (a)(2) at the location intended by the donor of the property, or (2)other exempt purposes of the organization which are unrelated to such property. (c)

Exception

The tax imposed by subsection (a) shall not apply to any contribution if, before the contribution is received, there is a determination by a court of competent jurisdiction that the relocation of such property is the only reasonable, appropriate, and economically viable alternative to preserve and protect the property.

. (b)

Clerical amendment

The table of sections for chapter 41 of such Code is amended by adding at the end the following new item: Sec. 4913. Tax on organizations accepting contributions which may be used to relocate property held by the organization if the relocation is contrary to the intent of the donor of the property.. (c)

Effective date

The amendments made by this section shall apply to contributions made after December 31, 2005.