NY Tax L § 13 (2021)
2021 New York Laws TAX - Tax Article 1 - Short Title; Definitions; Miscellaneous 13

§  13.  (a)  Exemption  from  taxation  for victims or targets of Nazi persecution. Notwithstanding any  provision  of  law  to  the  contrary, amounts  received (including accumulated interest) by victims or targets of Nazi persecution  from  an  eligible  settlement  fund,  or  from  an eligible  grantor  trust  established for the benefit of such victims or targets as set forth in this  section,  whether  or  not  includable  in income  for  federal income tax purposes, shall be exempt from all state and local taxes imposed on or measured by income. Provided however, that this exemption shall not apply to amounts received from assets  acquired with  such assets or with the proceeds from the sale of such assets. For the purposes of this section, "victims or targets of  Nazi  persecution" means  any  individual,  corporation,  partnership, sole proprietorship, unincorporated    association,    community,    congregation,     group, organization,  or other entity persecuted or targeted for persecution by the  Nazi  Regime  because  of   race,   religion,   ethnicity,   sexual orientation,  national  origin,  or  physical  or  mental  disability or handicap,  or  the   heirs,   successors,   administrators,   executors, affiliates,  or  assignees  of  such  victims  or  targets, or any other claimant receiving funds from an eligible settlement fund,  or  from  an eligible  grantor  trust  established for the benefit of such victims or targets. An eligible settlement fund is an entity that  is  treated  for federal  income  tax  purposes  as  a designated or qualified settlement fund, as such term is defined in section 468B of  the  internal  revenue code  and  the  regulations  thereunder,  which  is  established for the principal purpose of resolving and satisfying claims arising from or  in connection  with  any  act  or  omission  in  any  way  relating  to the Holocaust, World War II  and  its  prelude  and  aftermath,  victims  or targets  of  Nazi  persecution, transactions with or actions of the Nazi Regime, or treatment of refugees fleeing Nazi persecution by or  in  the Swiss  Confederation. An eligible grantor trust is a grantor trust which is established for the principal purpose  of  resolving  and  satisfying such claims.  (b) Exemption from taxation for qualified settlement funds established for  the  benefit of victims or targets of Nazi persecution by or in the Swiss Confederation. Notwithstanding any other provision of law  to  the contrary, an entity that is treated for federal income tax purposes as a designated  or  qualified  settlement  fund,  as such term is defined in section  468B  of  the  internal  revenue  code  and   the   regulations thereunder,  or  a grantor trust, either of which is established for the principal purpose of resolving and satisfying claims arising from or  in connection  with  any  act  or  omission  in  any  way  relating  to the Holocaust, World War II  and  its  prelude  and  aftermath,  victims  or targets  of  Nazi  persecution, transactions with or actions of the Nazi Regime, treatment of refugees fleeing Nazi persecution,  by  or  in  the Swiss  Confederation,  shall  be  exempt  from  all  taxes imposed on or measured by income, the commercial rent tax imposed by the city  of  New York  and  all  sales  and use taxes whether imposed by the State or any local jurisdiction or municipality.