California lawmakers aim to strip nonprofit status from groups that participated in Jan. 6 riot. // sfchronicle
If Gov. Gavin Newsom signs the measure into law,would let the state’s attorney general decide if a group’s tax-exempt status should be revoked for participating in treason or insurrection or advocating the overthrow of the government. It would apply to state taxes, not federal taxes.
To be exempt from paying taxes, nonprofits are already subject to a list of rules under state and federal law, including that they cannot campaign for or against political candidates. Tax-exempt status helps nonprofits fundraise, because donors can deduct contributions from their taxable income.
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