http://www.npr.org/templates/story/story.php?storyId=176708316Author: Associated Press Source: NPR News/AP
Lawmakers in California are considering a tax bill known as the Youth Equality Act which would take away some of the tax exemptions for youth groups that discriminate against members and leaders based on gender identity, sexual orientation, race, nationality, religion/religious affiliation. "The legislation would deny tax-exempt status to nonprofit youth groups that discriminate on the basis of gender identity, race, sexual orientation, nationality, religion or religious affiliation. As a result, it would require those organizations to pay corporate taxes on donations, membership dues, camp fees and other sources of income, and to obtain sellers permits and pay sales taxes on food, beverages and homemade items sold at fundraisers."
Some groups are concerned about First Amendment rights, since the Supreme Court has said that private organizations can exclude gays and lesbians, but the California Legislative Analyst's Office has said the state has the authority to decide what groups qualify for tax breaks.