Tax-exempt status: insurrection.

The Corporation Tax Law, in modified conformity with federal law, provides an exemption from the taxes imposed by those laws for specified organizations. Existing law provides that tax-exempt status, under certain circumstances, may be suspended or revoked. Existing federal law defines various crimes against the established republican form of government, including treason, insurrection, and seditious conspiracy, as provided. This bill would authorize the Attorney General to make a finding that a tax-exempt organization has actively engaged in, or incited the active engagement in, acts or conspiracies defined as criminal under specified federal law, and likely to produce imminent violation of that federal law. The bill would require the Attorney General to notify the Franchise Tax Board of such a finding, and would state the existing authority of the Franchise Tax Board to revoke the tax-exempt status of the organization found to be in violation.