NY Tax L § 1116 (2021)
2021 New York Laws TAX - Tax Article 28 - Sales and Compensating Use Taxes Part 3 - Exemptions 1116 - Exempt Organizations.

§ 1116. Exempt organizations. (a) Except as otherwise provided in this section,  any  sale or amusement charge by or to any of the following or any use or occupancy by any of the following shall not be subject to the sales and compensating use taxes imposed under this article:  (1) The state of New York, or any of its agencies,  instrumentalities, public  corporations (including a public corporation created pursuant to agreement  or  compact  with  another  state  or  Canada)  or  political subdivisions where it is the purchaser, user or consumer, or where it is a  vendor  of  services  or  property  of  a kind not ordinarily sold by private persons;  (2) The United  States  of  America,  and  any  of  its  agencies  and instrumentalities, insofar as it is immune from taxation where it is the purchaser, user or consumer, or where it sells services or property of a kind not ordinarily sold by private persons;  (3)  The United Nations or any international organization of which the United States of America is a member where it is the purchaser, user  or consumer,  or  where  it  sells  services  or  property  of  a  kind not ordinarily sold by private persons;  (4) Any corporation, association, trust,  or  community  chest,  fund, foundation,   or  limited  liability  company,  organized  and  operated exclusively for religious, charitable, scientific,  testing  for  public safety,  literary  or  educational  purposes,  or  to foster national or international amateur sports competition (but only if  no  part  of  its activities  involve  the provision of athletic facilities or equipment), or for the prevention of cruelty to children or animals, no part of  the net  earnings  of which inures to the benefit of any private shareholder or individual, no  substantial  part  of  the  activities  of  which  is carrying   on   propaganda,   or   otherwise   attempting  to  influence legislation, (except as otherwise provided in subsection (h) of  section five  hundred one of the United States internal revenue code of nineteen hundred fifty-four, as amended), and which does not participate  in,  or intervene  in  (including the publishing or distributing of statements), any political campaign on behalf of or in opposition  to  any  candidate for  public office. The provisions of this paragraph regarding political campaign activity shall be interpreted in the  same  manner  as  section 501(c)(3)   of   the  United  States  internal  revenue  code  has  been interpreted as of the effective date of the chapter of the laws  of  two thousand nineteen that amended this paragraph;  (5)  A  post  or  organization of past or present members of the armed forces of the United States, or an auxiliary unit or society  of,  or  a trust or foundation for, any such post or organization:  (A) organized in this state,  (B)  at least seventy-five percent of the members of which are past or present members of the armed forces of the United States as  defined  in section thirteen-a of the general construction law and substantially all of  the  other  members  of  which are individuals who are cadets or are spouses, widows, widowers, ancestors, or lineal descendants of  past  or present  members  of the armed forces of the United States or of cadets, and  (C) no part of the net earnings of which inures to the benefit of  any private shareholder or individual.  (6) The following Indian nations or tribes residing in New York state: Cayuga,  Oneida,  Onondaga,  Poospatuck,  Saint  Regis  Mohawk,  Seneca, Shinnecock, Tonawanda and Tuscarora, where it is the purchaser, user  or consumer.  (7)  A  not-for-profit  corporation  operating as a health maintenance organization subject to the provisions  of  article  forty-four  of  the public health law.  (8)  Cooperative and foreign corporations doing business in this state pursuant to the rural electric cooperative law.  (9)  A  credit union, as defined in subdivision nine of section two of the banking law, where it is the purchaser, user, or consumer, or  where it  is a vendor of services or property of a kind not ordinarily sold by private persons.  (b) Nothing in this section shall exempt:  (1) (i) retail sales of tangible personal  property  by  any  shop  or store operated by an organization described in paragraph (4), (5) or (6) of  subdivision  (a) of this section; (ii) sales, other than for resale, of  services  described  in  subdivision  (b)  or  paragraph   five   of subdivision  (c)  of section eleven hundred five of this article by that organization, whether or not at a shop or store; (iii) retail  sales  of tangible  personal  property  and sales, other than for resale, of those services by  that  organization,  made  with  a  degree  of  regularity, frequency,  and  continuity  by  remote means, such as by telephone, the internet, mail order or otherwise; or  (iv)  retail  sales  of  tangible personal  property  by  lease  or rental by that organization as lessor, whether or not at a shop or store;  (2) sales of food or drink in or by  a  restaurant,  tavern  or  other establishment  operated  by  an organization described in paragraph (1), paragraph (4), paragraph (5) or paragraph (6) of subdivision (a) of this section, other than sales exempt under paragraph (ii) of subdivision (d) of section eleven hundred five, from the taxes imposed hereunder, unless the purchaser is an organization exempt under this section;  (3) sales of the service of providing parking, garaging or storing for motor  vehicles  by  an  organization  described  in  paragraph  (4)  or paragraph  (5)  of  subdivision  (a)  of this section operating a garage (other than a garage which is part of  premises  occupied  solely  as  a private  one  or  two  family  dwelling),  parking lot or other place of business engaged in providing parking, garaging  or  storing  for  motor vehicles; or  (4) sales of tangible personal property or services by cooperative and foreign  corporations doing business in this state pursuant to the rural electric cooperative law, unless the purchaser is an organization exempt under this section.  (5) purchases of motor fuel or diesel motor fuel from the tax required to be prepaid pursuant to section eleven hundred two of this article and retail sales of motor fuel or diesel  motor  fuel  subject  to  the  tax imposed  by  sections eleven hundred five and eleven hundred ten of this article, except that purchases of such fuel by an organization described in paragraph one or two of subdivision (a) of this section for  its  own use  or  consumption,  purchases of motor fuel by a hospital included in the organizations described in paragraph four of  such  subdivision  for its  own  use  and consumption, purchases of motor fuel and diesel motor fuel by a fire company or fire department, as defined in  section  three of  the  volunteer  firefighters'  benefit  law or a voluntary ambulance service, as defined in section three thousand one of the  public  health law,  for  such department, company or service's own use and consumption for use in firefighting vehicles, apparatus or equipment,  or  emergency rescue or first aid response vehicles, apparatus or equipment, owned and operated  by  such  department,  company  or  service  if  such company, department or service qualifies as an exempt  organization  pursuant  to the  provisions of paragraph four of subdivision (a) of this section and purchases of diesel motor fuel by an organization described in paragraph four of such subdivision for its own heating use and  consumption  shall be exempt from such tax required to be prepaid and from retail sales and use taxes on such fuel.  (6)  purchases  of  cigarettes  from  the  tax  required to be prepaid pursuant to section eleven hundred three of this article, except that no prepayment of tax shall be required on sales of  cigarettes  sold  under such  circumstances  that this state is without power to impose such tax or sold to the United States or sold to or by a voluntary unincorporated organization  of the armed forces of the United States operating a place for sale of goods pursuant to regulations promulgated by the appropriate executive agency of the United States, to the extent  provided  in  such regulations  and  written policy statements of such agency applicable to such sales.  (7) rent received by a hotel operated  by  a  college  or  university, where  such  hotel  offers  one hundred or more rooms for occupancy, and where the individual paying said rent is not doing business on behalf of any organization exempted pursuant to subdivision (a) of this section.  (c)  (1)  Where  any  organization  described  in  paragraph  four  of subdivision (a) of this section carries on its activities in furtherance of  the  purposes  for  which it was organized, in premises in which, as part of said activities, it operates a hotel, occupancy of rooms in  the premises and rents therefrom received by such corporation or association shall not be subject to tax hereunder.  (2)  Nothing  in this subdivision shall exempt any hotel operated by a college or university and which offers one hundred  or  more  rooms  for occupancy  from  collecting  taxes  imposed  pursuant  to section eleven hundred five of this article from individuals who are not doing business on behalf of an organization exempted pursuant  to  subdivision  (a)  of this section.  (d)  (1)  Except as provided in paragraph (2) of this subdivision, any admissions all of the proceeds of which inure exclusively to the benefit of the following organizations shall not be subject to any of the  taxes imposed under subdivision (f) of section eleven hundred five:  (A)  an  organization  described  in  paragraph  (4),  (5)  or  (6) of subdivision (a) of this section;  (B) a society or  organization  conducted  for  the  sole  purpose  of maintaining  symphony  orchestras  or  operas  and receiving substantial support from voluntary contributions; or  (C) national guard organizations; or  (D) a police or fire department of  a  political  subdivision  of  the state,  or  a  voluntary  fire or ambulance company, or exclusively to a retirement, pension or disability fund for the sole benefit  of  members of  a  police  or  fire  department  or  to a fund for the heirs of such members.  (2) The exemption provided under paragraph  (1)  of  this  subdivision shall not apply in the case of admissions to:  (A)  Any  athletic  game or exhibition unless the proceeds shall inure exclusively to the benefit of elementary or secondary schools or  unless in  the  case  of  an  athletic game between two elementary or secondary schools, the entire gross proceeds from such game  shall  inure  to  the benefit  of  one  or  more  organizations  described in paragraph (4) of subdivision (a) of this section;  (B) Carnivals  or  rodeos  in  which  any  professional  performer  or operator  participates  for  compensation,  unless the entire net profit from such carnival or rodeo shall inure exclusively to the benefit of an organization described in paragraph four  of  subdivision  (a)  of  this section,   and  such  organization  shall  have  as  its  charitable  or educational purpose the operation of a school and of such a carnival  or rodeo; or  (3)  Admission charges for admission to the following places or events shall not be subject to any of the taxes imposed under  subdivision  (f) of section eleven hundred five:  (A) Any admission to agricultural fairs if no part of the net earnings thereof  inures  to  the  benefit  of any stockholders or members of the association conducting the same; provided  the  proceeds  therefrom  are used  exclusively for the improvement, maintenance and operation of such agricultural fairs.  (B) Any admission to a home or garden which is temporarily open to the general public as a  part  of  a  program  conducted  by  a  society  or organization  to  permit the inspection of historical homes and gardens; provided no part of the net earnings thereof inures to  the  benefit  of any private stockholder or individual.  (C)  Any admissions to historic sites, houses and shrines, and museums conducted in connection therewith, maintained and operated by a  society or  organization  devoted  to  the  preservation and maintenance of such historic sites, houses, shrines and museums; provided no part of the net earnings thereof inures to the benefit of  any  private  stockholder  or individual.  (e)  Receipts  from  the service of trash removal shall be exempt from the tax on such service imposed by this article, where such  service  is rendered  by  a municipal corporation of the state, other than a city of one million or more, including such  service  rendered  on  its  behalf, under an agreement with such corporation.  (f)(1)  For  purposes  of  paragraph  four  of subdivision (a) of this section, in the case of a qualified amateur sports organization (A)  the requirement of such paragraph that no part of its activities involve the provision  of  athletic facilities or equipment shall not apply, and (B) such organization shall  not  fail  to  meet  the  requirement  of  such paragraph merely because its membership is local or regional in nature.  (2)  For  purposes  of  this  subdivision, the term "qualified amateur sports organization"  means  any  organization  organized  and  operated exclusively   to   foster   national  or  international  amateur  sports competition  if  such  organization  is  also  organized  and   operated primarily  to conduct national or international competition in sports or to support and develop amateur athletes for  national  or  international competition in sports.  (g) For purposes of paragraph five of subdivision (a) of this section, duly  authorized representatives of any such post or organization, while acting on behalf of such post or organization, shall not be  subject  to the  tax imposed under subdivision (e) of section eleven hundred five or the unit fee imposed by section eleven hundred  four  of  this  article, provided  that  such  representatives  provide  an  exempt  organization certificate  from  such  post  or  organization  certifying  that   such representative is acting on its behalf.