Groups that helped Jan. 6 riot could lose nonprofit tax status

SACRAMENTO — California state lawmakers have taken aim at organizations that aided the Jan. 6 insurrection at the U.S. Capitol, passing a bill that seeks to strip them of tax-exempt status.

If Gov. Gavin Newsom signs the measure into law, SB834 would let the state’s attorney general decide if a group’s taxexempt 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.

Under current law, tax-exempt nonprofits must exist for a charitable purpose and are barred from participating in illegal activity. The measure clarifies that state agencies can use criminal activity related to an insurrection as a reason to revoke an organization’s taxexempt status.

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.

The bill’s author, Sen. Scott Wiener, said the measure fills an important gap in state law while presenting the bill on Tuesday for a vote.

“Taxpayers should not be subsidizing nonprofits that engage in or incite insurrection,” the San Francisco Democrat said.

Catie Stewart, a spokesperson for Wiener, said his office hasn’t identified specific nonprofits that would be targeted by the bill.

The measure passed out of both chambers of the Legislature without any debate. During floor votes on the measure, it received one “no” vote, from Assemblyman Randy Voepel, R-Santee (San Diego County). A spokesperson for Voepel did not respond to messages asking why he opposed the measure.

State Sen. Scott Wiener, D-S.F., wrote the bill that applies to state taxes.