Final answer:
The statement is true: threatening to expose a city official's sexuality to obtain a permit is considered extortion, as it involves coercing someone into acting by threatening their reputation, even without the exchange of money or property.
Step-by-step explanation:
True. Threatening to publicly accuse a city official of being gay or a lesbian unless he or she issues a needed permit is indeed considered extortion. Extortion does not necessarily involve the exchange of money or property; it can also include threats made to compel someone to act against their will or to damage their reputation. The history of the treatment of LGBTQ people shows that they have been vulnerable to extortion and other forms of violence, and often did not report these crimes out of fear of exposure or being wrongfully arrested themselves.
In the context of law and legal precedents, New York Times Co. v. Sullivan established that public officials, to prove they were libeled, must show a statement was published with malicious intent. This case makes it clear that public accusations need to meet certain criteria to be considered libelous or an illegal threat. Given the historical context and the legal definition of extortion, the scenario described would fall under this criminal category.