CA SB323

Revises the Sales and Use Tax Law exemption for nonprofit youth organizations by requiring they do not discriminate based on gender identity, race, sexual orientation, nationality, religion, or religious affiliation to qualify for the exemption.

Adds Section 23701.3 to the Revenue and Taxation Code effective for taxable years beginning on or after January 1, 2014, denying corporate tax exemptions to public charity youth organizations that discriminate on the basis of gender identity, race, sexual orientation, nationality, religion, or religious affiliation.

Defines discrimination to include either having a formal policy of discrimination or refusing to provide written assurance to the Franchise Tax Board of a formal non-discrimination policy.

Applies nondiscrimination requirements to specified youth organizations including Little League, Boy Scouts, Girl Scouts, YMCA, YWCA, 4-H Clubs, Special Olympics, and similar youth groups.

Requires a two-thirds vote in each house of the Legislature for passage due to resulting higher taxes under California Constitution Article XIII A, Section 3.