N.Y. TAX Law § 13

§ 13. (a) Exemption from taxation for victims or targets of Nazi\npersecution. Notwithstanding any provision of law to the contrary,\namounts received (including accumulated interest) by victims or targets\nof Nazi persecution from an eligible settlement fund, or from an\neligible grantor trust established for the benefit of such victims or\ntargets as set forth in this section, whether or not includable in\nincome for federal income tax purposes, shall be exempt from all state\nand local taxes imposed on or measured by income. Provided however, that\nthis exemption shall not apply to amounts received from assets acquired\nwith such assets or with the proceeds from the sale of such assets. For\nthe purposes of this section, "victims or targets of Nazi persecution"\nmeans any individual, corporation, partnership, sole proprietorship,\nunincorporated association, community, congregation, group,\norganization, or other entity persecuted or targeted for persecution by\nthe Nazi Regime because of race, religion, ethnicity, sexual\norientation, national origin, or physical or mental disability or\nhandicap, or the heirs, successors, administrators, executors,\naffiliates, or assignees of such victims or targets, or any other\nclaimant receiving funds from an eligible settlement fund, or from an\neligible grantor trust established for the benefit of such victims or\ntargets. An eligible settlement fund is an entity that is treated for\nfederal income tax purposes as a designated or qualified settlement\nfund, as such term is defined in section 468B of the internal revenue\ncode and the regulations thereunder, which is established for the\nprincipal purpose of resolving and satisfying claims arising from or in\nconnection with any act or omission in any way relating to the\nHolocaust, World War II and its prelude and aftermath, victims or\ntargets of Nazi persecution, transactions with or actions of the Nazi\nRegime, or treatment of refugees fleeing Nazi persecution by or in the\nSwiss Confederation. An eligible grantor trust is a grantor trust which\nis established for the principal purpose of resolving and satisfying\nsuch claims.\n (b) Exemption from taxation for qualified settlement funds established\nfor the benefit of victims or targets of Nazi persecution by or in the\nSwiss Confederation. Notwithstanding any other provision of law to the\ncontrary, an entity that is treated for federal income tax purposes as a\ndesignated or qualified settlement fund, as such term is defined in\nsection 468B of the internal revenue code and the regulations\nthereunder, or a grantor trust, either of which is established for the\nprincipal purpose of resolving and satisfying claims arising from or in\nconnection with any act or omission in any way relating to the\nHolocaust, World War II and its prelude and aftermath, victims or\ntargets of Nazi persecution, transactions with or actions of the Nazi\nRegime, treatment of refugees fleeing Nazi persecution, by or in the\nSwiss Confederation, shall be exempt from all taxes imposed on or\nmeasured by income, the commercial rent tax imposed by the city of New\nYork and all sales and use taxes whether imposed by the State or any\nlocal jurisdiction or municipality.\n