I 

110TH CONGRESS 

1ST SESSION H. R. 1207 

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. 

IN THE HOUSE OF REPRESENTATIVES 

FEBRUARY 27, 2007 

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 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

mstockstill on PROD1PC66 with BILLS

2 

•HR 1207 IH

1 SECTION 1. EXCISE TAX PENALTY ON TAX-EXEMPT ORGANI2 ZATIONS ACCEPTING CONTRIBUTIONS 

3 WHICH MAY BE USED TO RELOCATE PROP4 ERTY HELD BY THE ORGANIZATION IF THE 

5 RELOCATION IS CONTRARY TO THE INTENT 

6 OF THE DONOR OF THE PROPERTY. 

7 (a) IN GENERAL.—Chapter 41 of the Internal Rev8 enue Code of 1986 (relating to public charities) is amend9 ed by adding at the end the following new section: 

10 ‘‘SEC. 4913. TAX ON ORGANIZATIONS ACCEPTING CON11 TRIBUTIONS WHICH MAY BE USED TO RELO12 CATE PROPERTY HELD BY THE ORGANIZA13 TION IF THE RELOCATION IS CONTRARY TO 

14 THE INTENT OF THE DONOR OF THE PROP15 ERTY. 

16 ‘‘(a) TAX IMPOSED.— 

17 ‘‘(1) IN GENERAL.—There is hereby imposed on 

18 the disqualified contributions of any organization to 

19 which this section applies a tax equal to 100 percent 

20 of the amount of such contributions. The tax im21 posed by this section shall be paid by the organiza22 tion. 

23 ‘‘(2) ORGANIZATIONS TO WHICH SECTION AP24 PLIES.—This section shall apply to any organization 

25 described in section 501(c)(3) and exempt from tax 

mstockstill on PROD1PC66 with BILLS

3 

•HR 1207 IH

1 under section 501(a) if such organization holds 

2 property— 

3 ‘‘(A) which was donated to such organiza4 tion (or any other organization so described), 

5 and 

6 ‘‘(B) with respect to which there is written 

7 evidence of the donor’s intent that the property 

8 not be relocated from the site identified by the 

9 donor. 

10 ‘‘(b) DISQUALIFIED CONTRIBUTION.—For purposes 

11 of this section, the term ‘disqualified contribution’ means 

12 any contribution received by an organization unless the 

13 contribution is permanently set aside to carry out— 

14 ‘‘(1) the exempt purposes of the organization 

15 with respect to property referred to in subsection 

16 (a)(2) at the location intended by the donor of the 

17 property, or 

18 ‘‘(2) other exempt purposes of the organization 

19 which are unrelated to such property. 

20 ‘‘(c) EXCEPTION.—The tax imposed by subsection (a) 

21 shall not apply to any contribution if, before the contribu22 tion is received, there is a determination by a court of 

23 competent jurisdiction that the relocation of such property 

24 is the only reasonable, appropriate, and economically via25 ble alternative to preserve and protect the property.’’. 

mstockstill on PROD1PC66 with BILLS

4 

•HR 1207 IH

1 (b) CLERICAL AMENDMENT.—The table of sections 

2 for chapter 41 of such Code is amended by adding at the 

3 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.’’. 

4 (c) EFFECTIVE DATE.—The amendments made by 

5 this section shall apply to contributions made after De6 cember 31, 2006. 

Æ 

mstockstill on PROD1PC66 with BILLS