2023 New York Laws › TAX - Tax › Article 28 - Sales and Compensating Use Taxes › Part 3 - Exemptions › 1115 - Exemptions From Sales and Use Taxes.

§  1115.  Exemptions  from  sales and use taxes. (a) Receipts from the
following shall be exempt from the tax on  retail  sales  imposed  under
subdivision  (a) of section eleven hundred five and the compensating use
tax imposed under section eleven hundred ten:
(1) (A) Food, food  products,  beverages,  dietary  foods  and  health
supplements,  sold for human consumption but not including (i) candy and
confectionery, (ii) fruit drinks which contain less than seventy percent
of natural fruit juice, (iii) soft drinks, sodas and beverages  such  as
are  ordinarily  dispensed  at soda fountains or in connection therewith
(other than coffee,  tea  and  cocoa)  and  (iv)  beer,  wine  or  other
alcoholic  beverages,  all of which shall be subject to the retail sales
and compensating use taxes, whether or not the item is  sold  in  liquid
form.  Nothing in this subparagraph shall be construed as exempting food
or drink from the tax imposed under subdivision (d)  of  section  eleven
hundred five of this article.
(B)  Until  May  thirty-first,  two thousand twenty-five, the food and
drink excluded from the exemption provided  by  clauses  (i),  (ii)  and
(iii) of subparagraph (A) of this paragraph, and bottled water, shall be
exempt  under  this subparagraph: (i) when sold for one dollar and fifty
cents or less through any vending machine that accepts coin or  currency
only;  or  (ii)  when  sold  for two dollars or less through any vending
machine that accepts any form of payment other than  coin  or  currency,
whether or not it also accepts coin or currency.
(2) Water, when delivered to the consumer through mains or pipes.
(3) Drugs and medicines intended for use, internally or externally, in
the  cure,  mitigation, treatment or prevention of illnesses or diseases
in human beings, medical equipment (including component  parts  thereof)
and  supplies  required for such use or to correct or alleviate physical
incapacity, and products consumed by  humans  for  the  preservation  of
health  but  not  including cosmetics or toilet articles notwithstanding
the presence of  medicinal  ingredients  therein  or  medical  equipment
(including  component parts thereof) and supplies, other than such drugs
and medicines, purchased at retail for use  in  performing  medical  and
similar services for compensation.
(3-a) Menstrual products, including, but not limited to, pads, tampons
and panty liners.
(3-b)  Adult-use  cannabis  products as defined by article twenty-C of
this chapter.
(4) Prosthetic aids, hearing aids, eyeglasses and  artificial  devices
and  component  parts thereof purchased to correct or alleviate physical
incapacity in human beings.
(5) Newspapers and periodicals.
(6) (A) Tangible personal property, whether or not incorporated  in  a
building  or  structure,  for use or consumption predominantly either in
the production for sale of tangible personal property by farming or in a
commercial horse boarding operation, or in both.
(B) With respect  to  the  exemption  of  motor  vehicles  under  this
paragraph,  (i) use of a motor vehicle either in the production phase of
farming or in a commercial horse boarding operation, or in  both,  shall
be  defined as any use of the motor vehicle on property either farmed or
used in a commercial horse boarding operation, or  both,  by  the  motor
vehicle  purchaser  or user or in direct and uninterrupted trips between
properties farmed or used in such  operation,  or  both,  by  the  motor
vehicle purchaser or user, and (ii) "predominantly" shall mean that more
than  fifty  percent  of  the  motor  vehicle's  use  is  either  in the
production phase of farming or in a commercial horse boarding operation,
or in  both.  The  percentage  of  such  vehicle's  use  either  in  the
production phase of farming or in a commercial horse boarding operation,

or  in  both, may be computed either on the basis of mileage or hours of
use, at the discretion of the motor vehicle purchaser or user. A  person
may  purchase  a  motor  vehicle  qualifying  for  exemption  under this
paragraph  without payment of tax imposed by section eleven hundred five
or eleven hundred ten  of  this  article  by  furnishing  the  vendor  a
properly    completed   exemption   certificate   promulgated   by   the
commissioner; and such purchaser may register such vehicle or apply  for
a  certificate  of title for such vehicle with the commissioner of motor
vehicles or a county clerk, without payment of such taxes, by furnishing
such a properly completed certificate to such commissioner or clerk.
(7) Tangible personal property sold  by  a  mortician,  undertaker  or
funeral  director.  However,  all  tangible  personal property sold to a
mortician, undertaker or funeral director for use in the  conducting  of
funerals  shall  not  be  deemed a sale for resale within the meaning of
paragraph (4) of subdivision (b) of section eleven hundred one  of  this
chapter and shall not be exempt from the retail sales tax.
(8)  Commercial  vessels  primarily  engaged  in interstate or foreign
commerce and property used by or purchased for the use of  such  vessels
for  fuel,  provisions,  supplies,  maintenance  and repairs (other than
articles purchased for the original equipping of a new ship).
(9) Fuel sold to an air line for use in its airplanes.
(10) Tangible personal  property  purchased  for  use  or  consumption
directly   and   predominantly   in  research  and  development  in  the
experimental or laboratory sense. Such research  and  development  shall
not be deemed to include the ordinary testing or inspection of materials
or products for quality control, efficiency surveys, management studies,
consumer surveys, advertising, promotions or research in connection with
literary, historical or similar projects.
(11)  The  flags  of the United States of America and the state of New
York.
(11-a)  Any  military  decorations,  including  but  not  limited  to,
ribbons,  medals, mini-medals, and lapel pins, when sold to a purchaser:
(i) who is a veteran of the United States provided  that  the  purchaser
shall  present  to  the vendor proof in the form of discharge papers, or
other official documentation, of his or her veteran status; or (ii)  who
is  an  active  member of the military provided that the purchaser shall
present to the vendor proof or other official  documentation  of  actual
military service.
(11-b)  Military  service  flags,  prisoner of war flags and blue star
banners.
(12) Machinery or  equipment  for  use  or  consumption  directly  and
predominantly  in  the  production  of  tangible personal property, gas,
electricity,  refrigeration  or  steam  for  sale,   by   manufacturing,
processing,  generating, assembling, refining, mining or extracting, but
not including parts with a useful life of one year or less or  tools  or
supplies  used  in  connection  with  such  machinery or equipment. This
exemption shall include all pipe, pipeline, drilling rigs, service rigs,
vehicles and associated equipment used in the drilling,  production  and
operation  of  oil,  gas, and solution mining activities to the point of
sale to the first commercial purchaser.
(12-a) Tangible personal property for use or consumption directly  and
predominantly  in  the  receiving,  initiating,  amplifying, processing,
transmitting, retransmitting, switching or monitoring  of  switching  of
telecommunications  services  for  sale  or internet access services for
sale or any combination thereof. Such tangible personal property  exempt
under  this  subdivision  shall include, but not be limited to, tangible
personal property used or consumed to upgrade systems to allow  for  the
receiving,    initiating,    amplifying,    processing,    transmitting,

retransmitting,   switching    or    monitoring    of    switching    of
telecommunications  services  for  sale  or internet access services for
sale or any combination thereof. As used in  this  paragraph,  the  term
"telecommunications  services" shall have the same meaning as defined in
paragraph (g) of subdivision one of section one hundred eighty-six-e  of
this chapter.
* (12-b)  (i)  Machinery,  equipment  or  apparatus  used  or consumed
directly and predominantly to upgrade cable television systems to  allow
for  the  receiving,  initiating,  amplifying, processing, transmitting,
retransmitting, switching or monitoring of switching  of  digital  cable
television  service  for sale, including parts with a useful life of one
year or less  and  tools  or  supplies  used  in  connection  with  such
machinery,  equipment or apparatus; and (ii) to the extent not otherwise
exempt, equipment or apparatus, sold to an entity principally engaged in
furnishing cable television service for sale,  for  use  or  consumption
directly  and  predominantly  in  the receiving, initiating, amplifying,
processing, transmitting, retransmitting,  switching  or  monitoring  of
switching  of  internet  access service for sale, including parts with a
useful life of  one  year  or  less  and  tools  and  supplies  used  in
connection  with such equipment or apparatus. As used in this paragraph,
the term "digital cable television service" shall mean cable  television
service,  as defined in subparagraph two of paragraph (b) of subdivision
two of section one hundred eighty-six-e of this chapter, transmitted  by
the  use  of  digital technology; and the term "internet access service"
shall mean such term as defined in subdivision (v) of this section.
* NB Expired September 1, 2003
13. Tangible personal property  sold  through  coin  operated  vending
machines  at  ten  cents  or  less,  provided  the retailer is primarily
engaged in making such sales and maintains records satisfactory  to  the
state tax commission.
(13-a)  Tangible  personal  property  sold  through coin operated bulk
vending machines at fifty  cents  or  less,  provided  the  retailer  is
primarily   engaged   in   making   such  sales  and  maintains  records
satisfactory to the commissioner.  As  used  in  this  paragraph,  "bulk
vending   machine"   means   a   vending  machine,  containing  unsorted
merchandise, which, upon insertion of a  coin,  dispenses  the  same  in
approximately  equal  portions,  at  random and without selection by the
customer.
(13-b) Temporary transportation  devices  sold  through  coin-operated
equipment,  provided  the  retailer  is primarily engaged in making such
sales and maintains records satisfactory to the commissioner. As used in
this paragraph, "temporary transportation device" means an instrument of
transport used for a limited period of time for the purpose of  carrying
luggage   or   merchandise   a  short  distance  within  a  facility  of
embarkation/disembarkation or a  facility  where  such  merchandise  was
purchased.
(14)  Motor  vehicles,  as such term is defined in section one hundred
twenty-five of the vehicle and traffic law, sold by a husband or wife to
his or her spouse, or by a parent to his or her child, or by a child  to
his  or her parent. Provided, however, this exemption shall not apply if
the vendor is a dealer as defined in section four hundred fifteen of the
vehicle and traffic law.
(14-a) Motor vehicles, as such term is defined in section one  hundred
twenty-five  of  the  vehicle and traffic law, upon registration of such
motor vehicle if such motor vehicle was purchased in another state by  a
person  while he or she was in the military service of the United States
upon the return of such person to this state, as long as he or  she  has
proof  of  payment,  whether made by the seller or purchaser, in another

state of one or more of the  following  taxes  on  such  motor  vehicle:
sales,  use,  excise,  usage,  or  a highway use tax necessary to obtain
title.
(15) Tangible personal property sold to a contractor, subcontractor or
repairman  for  use  in  (i)  erecting a structure or building (A) of an
organization described in subdivision  (a)  of  section  eleven  hundred
sixteen  or  (B)  used  predominantly  either in the production phase of
farming or in a commercial horse boarding operation, or in both, or (ii)
adding to, altering or improving real property, property or land (A)  of
such  an organization or (B) used predominantly either in the production
phase of farming or in a commercial  horse  boarding  operation,  or  in
both,  as  the  terms real property, property or land are defined in the
real property tax law; provided, however, no exemption shall exist under
this paragraph unless such tangible personal property is  to  become  an
integral component part of such structure, building or real property.
(16) Tangible personal property sold to a contractor, subcontractor or
repairman  for use in maintaining, servicing or repairing real property,
property or land (i) of an organization described in subdivision (a)  of
section  eleven hundred sixteen or (ii) used predominantly either in the
production phase of farming or in a commercial horse boarding operation,
or in both, as the terms real property, property or land are defined  in
the  real  property tax law; provided, however, no exemption shall exist
under this paragraph unless such tangible personal property is to become
an integral component part of such structure, building or real property.
(17) Tangible personal property sold by a contractor, subcontractor or
repairman  to  a  person  other  than  an  organization   described   in
subdivision (a) of section eleven hundred sixteen, for whom he is adding
to,   or  improving  real  property,  property  or  land  by  a  capital
improvement, or for whom he is about to do any of the foregoing, if such
tangible personal property is to become an integral  component  part  of
such  structure,  building  or real property; provided, however, that if
such sale is made pursuant to a contract irrevocably entered into before
September first, nineteen hundred sixty-nine, no exemption  shall  exist
under this paragraph.
(18)  Tangible  personal  property  sold  by a person at his residence
provided such person or any member of his household does not  conduct  a
trade or business in which similar items are sold, and the receipts from
such  sales can reasonably be expected not to exceed six hundred dollars
in a calendar year. If such person reasonably expects that his  receipts
from  such sales will not exceed six hundred dollars in a calendar year,
but such receipts do exceed such sum, the exemption provided for in this
paragraph will apply but only  to  the  first  six  hundred  dollars  of
receipts  in  such  calendar  year.  Provided,  however,  where a person
sixteen years of age or older has engaged in such sales for  three  days
in  a  calendar year, the exemption provided for in this paragraph shall
not apply to subsequent sales  in  that  calendar  year.  The  exemption
provided  for  in  this paragraph shall also not apply to (A) sales at a
private residence conducted by an auctioneer,  sheriff  or  other  third
party,  (B) a sale held to liquidate an estate or (C) the sale of boats,
snowmobiles or motor vehicles except such sales of motor vehicles within
the exemptions of paragraph fourteen of subdivision (a) of this section.
(18-a) Tangible personal property manufactured and sold by a  veteran,
as  defined in section twenty-two of the veterans' services law, for the
benefit of a veteran's service organization, provided that  such  person
or  any  member  of  his  or  her  household does not conduct a trade or
business in which similar items are sold, the first  two  thousand  five
hundred dollars of receipts from such sales in a calendar year.
(19)  Cartons,  containers,  and  wrapping and packaging materials and
supplies, and components thereof for use and consumption by a vendor  in
packaging  or  packing tangible personal property for sale, and actually
transferred by the vendor to the purchaser.
(19-a)  Milk  crates  purchased  by  a  dairy farmer or New York state
licensed milk distributor and used  exclusively  and  directly  for  the
packaging and delivery of milk and milk products to customers.
(20) Paper, ink and any other tangible personal property purchased for
use  in  the publication of a shopping paper, as such term is defined in
and limited by subdivision (i) of this section, which  is  to  become  a
physical component part of such paper.
(21)  Commercial  aircraft primarily engaged in intrastate, interstate
or foreign commerce, machinery or equipment  to  be  installed  on  such
aircraft  and property used by or purchased for the use of such aircraft
for  maintenance  and  repairs  and  flight  simulators   purchased   by
commercial airlines.
(21-a)  General  aviation  aircraft,  and machinery or equipment to be
installed on such aircraft. For purposes of this  subdivision,  "general
aviation  aircraft"  means  an  aircraft that is used in civil aviation,
that is not a commercial aircraft as defined in paragraph  seventeen  of
subdivision  (b) of section eleven hundred one of this article, military
aircraft, unmanned aerial vehicle or drone.
(22) The rental  or  lease  of  trucks,  tractors  or  tractor-trailer
combinations to an authorized carrier, pursuant to a written contractual
agreement,  for  use in the transportation for hire of tangible personal
property as augmenting equipment by such  authorized  carrier,  provided
that  under  such rental, lease or license to use, the owner of any such
vehicle or any  employee  of  such  owner  operates  such  vehicle.  For
purposes of this paragraph, the term "authorized carrier" shall have the
same   meaning  given  that  term  in  subpart-A  of  part  ten  hundred
fifty-seven of title forty-nine of the code of federal  regulations  and
in  part eight hundred forty-five of title seventeen of the codes, rules
and regulations of the state of New York, as the case may  be,  and  the
term  "augmenting equipment" shall have the same meaning given that term
in such part of such title of the codes, rules and  regulations  of  the
state of New York.
(23) Used mobile homes.
(24) Fishing vessels used directly and predominantly in the harvesting
of  fish for sale, and property used by or purchased for the use of such
vessels for fuel, provisions, supplies, maintenance and repairs. For the
purpose of this paragraph the term fishing vessel shall not include  any
vessel used predominantly for sport fishing purposes.
(25)  Natural  gas  used  for personal residence consumption by a land
owner from, or provided in exchange for gas from,  a  natural  gas  well
located  on  property owned by such land owner, such gas having been set
aside for the property owner's use by lease.
(26) Tractors, trailers or semi-trailers, as such terms are defined in
article one of the vehicle and traffic law, and  property  installed  on
such  vehicles for their equipping, maintenance or repair, provided such
vehicle is used in combination where the gross vehicle  weight  of  such
combination exceeds twenty-six thousand pounds.
(27) Precious metal bullion sold for investment, provided that (i) the
retailer,  if  so  required,  is  registered  pursuant  to section three
hundred fifty-nine-e of the general business law and (ii) the receipt or
consideration given or contracted to be given for such  bullion  depends
only  on the value of the metal content of such bullion. "Precious metal
bullion"  means  bars,  ingots  or  coins  of  gold,  silver,  platinum,
palladium,  rhodium,  ruthenium  or iridium, but shall not include bars,

ingots or coins which  have  been  manufactured,  processed,  assembled,
fabricated or used for an industrial, professional, esthetic or artistic
purpose.  Precious  metal  bullion  shall  be  deemed  to  be  sold  for
investment  when  it  is sold for more than one thousand dollars and the
purchaser or user or agent of either of them holds it in the  same  form
as  when it was purchased and does not manufacture, process, assemble or
fabricate such bullion for its own use. For purposes of this  paragraph,
the  receipt  or  consideration given or contracted to be given shall be
deemed to depend only on the value of the metal content if, at the  time
of  sale  or  purchase at retail, such receipt or consideration does not
exceed (i) one hundred forty percent, with respect to silver  coins,  or
(ii)  one  hundred  twenty  percent, with respect to gold coins weighing
one-quarter of an ounce or less, or (iii) one hundred  fifteen  percent,
with  respect  to  other  coins, of the greater of (A) the daily closing
bullion cash price of such metal in the open market or  (B)  the  coins'
face  value  at  prevailing  rates of exchange, or (iv), with respect to
bars and ingots, one hundred fifteen percent of such bullion cash  price
of  such metal. Where there is no such closing price for such metal, the
average of the bid and asked cash prices shall be substituted  for  such
closing price.
(28) Computer software designed and developed by the author or creator
to  the  specifications  of  a  specific  purchaser which is transferred
directly or indirectly  to  a  corporation  which  is  a  member  of  an
affiliated  group of corporations within the meaning of subparagraph six
of paragraph (b) of subdivision seventeen of section two  hundred  eight
of  this  chapter except for clauses (ii) and (iii) of such subparagraph
that includes  such  purchaser,  or  to  a  partnership  in  which  such
purchaser  and  other  members  of such affiliated group have at least a
fifty percent capital or profits interest (but only if the  transfer  is
not in pursuance of a plan having as its principal purpose the avoidance
or evasion of tax under this article), but in no case including computer
software   which   is  pre-written,  as  defined  in  paragraph  six  of
subdivision (b) of section  eleven  hundred  one  of  this  article  and
available to be sold to customers in the ordinary course of the seller's
business.
(29) a horse which is a racehorse registered with the jockey club, the
United States trotting association or the national steeplechase and hunt
association  (or such a horse during the first twenty-four months of its
life if it is eligible to be so registered) which is purchased  or  used
with  the  intent  that  it  shall  be  entered  in  an  event  on which
pari-mutuel wagering is authorized by law,  except  that  the  exemption
provided  for  under  this  paragraph  shall not apply to any such horse
which is considered to be at least four years old and has never raced in
an event on which pari-mutuel wagering is authorized by  law.  Provided,
further,  the  purchaser  of  such a racehorse must give to the seller a
certification  containing  such  information  as  the  commissioner   of
taxation  and  finance shall require, which shall include a statement to
the effect that the purchaser intends to enter such horse in  events  on
which  pari-mutuel  wagering  is  authorized  by law. Such certification
shall be retained by such seller, together with documentary proof of the
age of such horse, for a  three-year  period.  The  provisions  of  this
paragraph  shall  apply to all sales and uses of racehorses occurring on
and after June first, nineteen hundred ninety-four.
(30) Clothing and footwear for  which  the  receipt  or  consideration
given or contracted to be given is less than one hundred ten dollars per
article  of clothing, per pair of shoes or other articles of footwear or
per item used or consumed to make or  repair  such  clothing  and  which
becomes a physical component part of such clothing.
(30-a)  Diapers  intended for human use including, but not limited to:
disposable, reusable, adult, and children's diapers.
* (31)  Copies  sold  through  coin  operated photocopying machines at
fifty cents or less. As used in this paragraph,  "photocopying  machine"
means  a  vending  machine  which,  upon  insertion  of a coin, copies a
document for a purchaser.
* NB There are 2 par. (31)'s
* (31) Enhanced  emissions  inspection  equipment,  certified  by  the
department   of  environmental  conservation,  pursuant  to  regulations
promulgated by  such  department,  for  use  in  an  enhanced  emissions
inspection  and maintenance program as required by the federal clean air
act of 1990, as amended in nineteen hundred  ninety(42  U.S.C.  7401  et
seq.) and the New York state clean air compliance act enacted by chapter
608  of  the laws of 1993, where such equipment is purchased and used by
an official inspection station licensed by  the  commissioner  of  motor
vehicles  under  article  five  of  the  vehicle  and  traffic  law  and
authorized to conduct the enhanced emission inspections required by such
federal act.
* NB There are 2 par. (31)'s
(32) Omnibuses, as such term is defined in article one of the  vehicle
and  traffic  law,  weighing  at  least  twenty-six  thousand pounds and
measuring at least  forty  feet  in  length  and  parts,  equipment  and
lubricants   purchased  and  used  in  their  operation,  provided  such
omnibuses are used to transport persons for hire by a carrier  operating
pursuant  to  a  certificate  of  authority issued by the New York state
commissioner of transportation or by an appropriate agency of the United
States. Where receipts from  the  sale  of  or  consideration  given  or
contracted  to be given for the purchase of an omnibus or other property
has been exempted under this paragraph, such receipts  or  consideration
shall not also qualify for the refund or credit described in subdivision
(b) of section eleven hundred nineteen of this article; where any or all
of  the  tax  on  receipts  from  the  sale of or consideration given or
contracted to be given for the purchase of an omnibus or other  property
has  been  refunded  or  credited under such subdivision (b), no part of
such receipts or consideration shall be  exempt  under  this  paragraph.
Nothing  in  this  paragraph  shall be construed to affect the refund or
credit under subdivision (b) of such  section  eleven  hundred  nineteen
with respect to the purchase or use of motor fuel or diesel motor fuel.
(33)  Wine  or  wine  product,  beer  or  beer product, cider or cider
product, liquor or liquor product, mead or mead product, and  the  kegs,
cans,  bottles,  growlers,  corks, caps, and labels used to package such
alcoholic product, furnished by the official agent  of  a  farm  winery,
winery,  brewery, farm brewery, cider producer, farm cidery, distillery,
farm distillery, mead producer, farm meadery, wholesaler, or importer at
a tasting held in accordance with the alcoholic beverage control law  to
a  customer or prospective customer who consumes such wine, beer, cider,
liquor or mead at such tasting.
(34) Textbooks purchased by full and part time  college  students  for
their  courses;  provided,  however,  that  upon purchase such a student
shall present a valid student identification card, and such  a  textbook
shall  be  required  for  a  course  being  taken  by such student at an
institution of higher education. For purposes of  this  subdivision  the
term:
(i)  "Textbooks"  includes  only  those  books  specifically  written,
designed or  produced  for  educational,  instructional  or  pedagogical
purposes.
(ii)  "Institution  of higher education" shall mean any institution of
higher  education,  recognized  and  approved  by  the  regents  of  the

university  of  the  state  of  New  York  or accredited by a nationally
recognized accrediting agency or association accepted  as  such  by  the
regents  of  the  university  of the state of New York, which provides a
course  of  study  leading  to  the granting of a post-secondary degree,
certificate or diploma.
(35)  Computer  system  hardware  used  or   consumed   directly   and
predominantly  in designing and developing computer software for sale or
in providing the service, for sale, of designing and developing internet
websites.
(36) Parts with a useful life of one year or less, tools and  supplies
for  use or consumption directly and predominantly in the production for
sale of gas or oil by manufacturing, processing, generating, assembling,
refining, mining, or extracting.
(37) (i) Machinery, equipment and  other  tangible  personal  property
specified  herein,  sold  to  a person operating an internet data center
located in this state for use in such a center, where such property: (A)
will be located or installed in a facility  or  structure  which  is  an
internet data center and (B) is required for and directly related to the
provision  of  internet website services for sale by the operator of the
center. Such property shall include computer system  hardware  including
servers  and  routers,  computer  software,  storage racks and cages for
computer equipment, interior fiber optic  and  copper  cables,  property
required  to maintain the appropriate climate controlled environment for
the property in the internet data center such as air filtration and  air
conditioning  equipment  and  vapor  barriers,  property related to fire
control such as fire suppression equipment and alarms, power generators,
power conditioners, property related to providing a  secure  environment
such  as  protective  barriers,  property  which  when installed in such
facility or structure will constitute raised flooring and other  similar
property.  For  purposes  of  this paragraph the operator of an internet
data center is a person (A) operating a facility  which  consists  of  a
data  center  specifically  designed  and  constructed to provide a high
security environment for the location of servers and  similar  equipment
on  which  reside  internet websites; and (B) providing at such facility
the internet website services of: (I) uninterrupted internet  access  to
its  customers'  web  pages  in a secure environment and (II) continuous
internet traffic management for its customers' web pages.
(ii) For purposes of this paragraph, an operator of an  internet  data
center,  primarily  engaged  in  the  sale  from such center of internet
access services exempt from tax under subdivision (v) of  this  section,
is  not  providing internet website services for sale. Primarily engaged
shall mean that more than fifty percent of the use of all the machinery,
equipment and other specified property in any such center,  which  would
otherwise  be  exempt under this paragraph, is for the rendition of such
internet access services.
(iii) Receipts from the retail sale of the tangible personal  property
exempt pursuant to subparagraph (i) of this paragraph if purchased by an
operator of an internet data center, shall be exempt when purchased by a
contractor,  subcontractor  or  repairman  for  use as described in such
subparagraph (i), where such property is to become a capital improvement
to real property.
(iv) In order  to  receive  the  exemption  provided  for  under  this
paragraph  or  subdivision  (y)  of  this  section,  the operator of the
internet data center or the contractor, subcontractor or repairman shall
furnish to the vendor of the exempt property or services  a  certificate
in such form and containing such information as may be prescribed by the
commissioner.
(38)  (A)  Machinery  or equipment or other tangible personal property
(including parts, tools and  supplies)  for  use  or  consumption  by  a
broadcaster  directly  and  predominantly  in  the production (including
post-production) of live or recorded programs which are used or consumed
by a broadcaster predominantly for the purpose of broadcast over-the-air
by such broadcaster or transmission through a cable television or direct
broadcast  satellite  system  by  such  broadcaster.  Tangible  personal
property, which is described in the preceding  sentence,  and  which  is
leased  by  a  broadcaster  to  another  person for that person's use or
consumption directly and  predominantly  in  the  production  (including
post-production) of such live or recorded programs by such person, shall
be  deemed to be used or consumed by the lessor for purposes of applying
the directly and predominantly requirement of this subparagraph.
(B)  Machinery  or  equipment  or  other  tangible  personal  property
(including  parts,  tools  and  supplies)  for  use  or consumption by a
broadcaster directly and predominantly in the transmission  of  live  or
recorded  programs  over-the-air or through a cable television or direct
broadcast  satellite  system  by  such  broadcaster.  Tangible  personal
property,  which  is  described  in the preceding sentence, and which is
leased by a broadcaster to another  person  for  that  person's  use  or
consumption  directly and predominantly in the transmission of such live
or recorded programs by such person, shall  be  deemed  to  be  used  or
consumed  by  the  lessor  for  purposes  of  applying  the directly and
predominantly requirement of this subparagraph.
(C) For purposes of this paragraph: (i) the term "broadcaster" means a
television or radio  station  licensed  by  the  federal  communications
commission,   a  television  or  radio  broadcast  network  or  a  cable
television network. The term "television  or  radio  broadcast  network"
means  an organization which produces and/or purchases programs intended
for transmission by affiliated television or radio stations licensed  by
the   federal  communications  commission  and  which  has  distribution
facilities or circuits available to such affiliated stations during  all
or  some  portion  of one or more days during each week. The term "cable
television  network"  means  an  organization  which   produces   and/or
purchases  programs intended for transmission either by direct broadcast
satellite systems or by cable systems  pursuant  to  an  affiliation  or
similar  agreement  and  which  has  distribution facilities or circuits
available to such direct  broadcast  satellite  systems  or  such  cable
systems during all or some portion of one or more days during each week.
For  the  purpose  of  subparagraph  (B)  of  this  paragraph,  the term
"broadcaster" shall  not  include  cable  system  operators  and  direct
broadcast satellite system operators. Provided, however, for the purpose
of  subparagraph  (A)  of this paragraph, such term shall also include a
cable system operator or a direct broadcast  satellite  system  operator
solely with respect to machinery or equipment or other tangible personal
property (including parts, tools and supplies) for use or consumption by
it   directly   and   predominantly   in   the   production   (including
post-production) of live or recorded programs intended for  transmission
to  its  viewers  over  its  system;  (ii) the term "programs" means any
performance, event, play, story or literary, musical, artistic or  other
work  used  for entertainment or educational purposes, including but not
limited to news, news specials, sporting events, game shows, talk  shows
and  commercials;  and  (iii)  the  term  "recorded  programs" means any
program contained on any medium.
(39) Tangible personal property for use or  consumption  directly  and
predominantly  in the production, including editing, dubbing and mixing,
of a film for sale regardless of the medium by means of which  the  film
is  conveyed  to  a  purchaser. For purposes of this paragraph, the term

"film" means feature films, documentary films, shorts, television films,
television commercials and similar productions.
(40)  Machinery  or  equipment  for  use  or  consumption directly and
predominantly in the control, prevention, or abatement of  pollution  or
contaminants  from manufacturing or industrial facilities, to the extent
such machinery or equipment is  not  otherwise  exempt  under  paragraph
twelve of this subdivision.
(41)  machinery  and  equipment  for use directly and predominantly in
loading, unloading and handling cargo  at  a  marine  terminal  facility
located  in a city with a population of one million or more which in two
thousand  three,  handled  more  than  three  hundred   fifty   thousand
twenty-foot equivalent units (TEUs). For the purpose of this section the
term  twenty-foot  equivalent unit (TEU) is used to express the relative
number of containers based on the equivalent  length  of  a  twenty-foot
container.
* (42)  E85,  CNG  or  hydrogen,  for  use or consumption directly and
exclusively in the engine of a motor vehicle and natural  gas  purchased
and  converted  into  CNG,  for  use  or for sale for use or consumption
directly and exclusively in the engine of a motor vehicle.
* NB Repealed September 1, 2026
(43) Ferry boats used directly  and  predominantly  to  provide  ferry
service  for  vehicles  and  passengers within a county or counties by a
ferry company whose rates for that ferry service are  regulated  by  the
county  or  counties in which that service is provided under section one
hundred thirty-one-g  of  the  highway  law  and  property  used  by  or
purchased  for the use of those exempt ferry boats for fuel, provisions,
supplies, maintenance and repairs.
(44) monuments as that term is defined in  paragraph  (f)  of  section
fifteen  hundred two of the not-for-profit corporation law, and tangible
personal property that will become a physical  component  part  of  such
monuments.
(45)  Sales  by  a  brewery  licensed  under  section fifty-one of the
alcoholic beverage control law, or a farm brewery licensed under section
fifty-one-a of such law, of no  more  than  four  samples  of  beer  not
exceeding  four  fluid ounces each, and each sample shall be a different
beer than the others. Only  a  customer's  first  purchase  during  each
calendar  day  at  each  licensed  entity  shall  be  exempt  under this
paragraph.
(46) Breast pump replacement parts  and  breast  pump  collection  and
storage  supplies  to an individual purchaser for home use. For purposes
of this subdivision:
(A)  "Breast  pump  replacement  parts"  shall  mean  items  used   in
conjunction  with  a  breast pump to collect milk expressed from a human
breast and shall include, but not be  limited  to:  breast  shields  and
breast  shield connectors; breast pump tubes and tubing adapters; breast
pump valves and membranes; backflow protectors  and  backflow  protector
adapters;  and  bottles and bottle caps specific to the operation of the
breast pump.  "Breast pump replacement parts" does not  include  storage
bags  and infant feeding bottles that are not specifically designed for,
or a component part of, a breast pump.
(B) "Breast pump collection and storage supplies"  shall  mean  breast
milk  storage  bags  used  to collect breast milk and to store collected
breast milk until it is ready for consumption.
(b) (i) Telephony and telegraphy and telephone and  telegraph  service
used  by  newspapers,  electronic  news services, radio broadcasters and
television broadcasters in the collection or dissemination of news shall
be exempt from the tax imposed under subdivision (b) of  section  eleven
hundred  five  of this article if the charge for such services is a toll

charge or a  charge  for  mileage  services,  including  the  associated
station terminal equipment.
(ii)  Gas,  electricity,  refrigeration  and steam, and gas, electric,
refrigeration  and  steam  service  of  whatever  nature  for   use   or
consumption  directly and exclusively in research and development in the
experimental or laboratory sense shall be exempt from  the  tax  imposed
under   subdivision   (b)   of  section  eleven  hundred  five  and  the
compensating use tax imposed under section eleven hundred  ten  of  this
article.  Such  research  and development shall not be deemed to include
the ordinary testing or inspection of materials or products for  quality
control,  efficiency  surveys,  management  studies,  consumer  surveys,
advertising,  promotions  or  research  in  connection  with   literary,
historical or similar projects.
(iii)  (A)  Electricity, steam, and refrigeration and electric, steam,
and refrigeration services that are (1) metered  and  (2)  generated  or
produced  by  a cogeneration facility owned or operated by a cooperative
corporation containing at least fifteen hundred apartments,  where  such
electricity,   steam,   or  refrigeration  and/or  electric,  steam,  or
refrigeration services are distributed to tenants and/or occupants of  a
cooperative  corporation,  shall  be exempt from the taxes imposed under
subdivisions (a)  and  (b)  of  section  eleven  hundred  five  and  the
compensating  use  tax  imposed under section eleven hundred ten of this
article.
(B) For purposes of this paragraph, the term  "cogeneration  facility"
means  (1)  a  facility that produces electric energy and steam or other
forms of useful energy (such as heat)  that  are  used  for  industrial,
commercial,  or  residential  heating  or  cooling  purposes that was in
operation before January first,  two  thousand  four,  and  is  used  to
generate  electricity  and/or  thermal  energy produced by such facility
when such electricity and/or thermal energy is supplied to and  used  by
tenants  and/or  occupants  of  a  cooperative  corporation;  or  (2)  a
cogeneration facility, as defined in clause one  of  this  subparagraph,
that   has  been  replaced  by  any  other  facility  used  to  generate
electricity and/or thermal energy produced by such  facility  when  such
electricity  and/or  thermal  energy  is supplied to and used by tenants
and/or occupants of a cooperative corporation.
(C) For purposes of this paragraph, the term "cooperative corporation"
means a corporation organized under the laws of New York, at least  some
of   the   stockholders   of  which  are  entitled,  by  reason  of  the
stockholders' ownership interest of stock in the corporation, to  occupy
for   dwelling  purposes  an  apartment  in  a  building  owned  by  the
corporation  pursuant  to  a  lease  or  occupancy  agreement  with  the
corporation.
(D)   Fuel,  gas,  electricity,  refrigeration  and  steam,  and  gas,
electric, refrigeration and steam  service,  used  or  consumed  in  the
production of electricity, steam, and refrigeration and electric, steam,
and refrigeration services for sale that are exempted under subparagraph
(A)  of  this paragraph, shall not be entitled to the exemption provided
by paragraph one of subdivision (c) of this section.
(c) (1) Fuel, gas, electricity,  refrigeration  and  steam,  and  gas,
electric,  refrigeration and steam service of whatever nature for use or
consumption directly and  exclusively  in  the  production  of  tangible
personal  property,  gas, electricity, refrigeration or steam, for sale,
by manufacturing, processing, assembling, generating,  refining,  mining
or  extracting shall be exempt from the taxes imposed under subdivisions
(a) and (b) of section eleven hundred five and the compensating use  tax
imposed under section eleven hundred ten of this article.
(2)   Fuel,  gas,  electricity,  refrigeration  and  steam,  and  gas,
electric, refrigeration and steam service of whatever nature for use  or
consumption  either in the production of tangible personal property, for
sale, by farming or in a commercial  horse  boarding  operation,  or  in
both,  shall be exempt from the taxes imposed under subdivisions (a) and
(b) of section eleven hundred five and the compensating use tax  imposed
under section eleven hundred ten of this article.
(d)  Services  otherwise taxable under paragraph (1), (2), (3), (7) or
(8) of subdivision (c) of section eleven hundred five  shall  be  exempt
from  tax  under  this  article  if the tangible property upon which the
services were performed is delivered to the purchaser outside this state
for use outside this state.
(e) Telephone and telegraph service paid for  by  inserting  coins  in
coin  operated  telephones where the charge is twenty-five cents or less
shall be exempt from the tax imposed under subdivision  (b)  of  section
eleven  hundred five. For the purposes of this subdivision, each payment
for overtime or additional usage beyond the initial usage  period  shall
be deemed to be a separate charge.
(f) (1) Services rendered by a veterinarian licensed and registered as
required   by  the  education  law  which  constitute  the  practice  of
veterinary medicine as defined in said  law,  including  hospitalization
for  which  no separate boarding charge is made, shall not be subject to
tax under paragraph (3) of subdivision (c)  of  section  eleven  hundred
five,  but  the exemption allowed by this subdivision shall not apply to
other services provided by a veterinarian to  pets  and  other  animals,
including, but not limited to, boarding, grooming and clipping. Articles
of  tangible  personal property designed for use in some manner relating
to domestic animals or poultry, when sold by such a veterinarian,  shall
not  be  subject  to tax under subdivision (a) of section eleven hundred
five or under section eleven hundred ten. However, the sale of any  such
articles  of  tangible  personal property to a veterinarian shall not be
deemed a sale  for  resale  within  the  meaning  of  paragraph  (4)  of
subdivision  (b)  of  section eleven hundred one and shall not be exempt
from retail sales tax.
(2) Drugs or medicine sold to or used by a  veterinarian  for  use  in
rendering  services  that  are  exempt pursuant to paragraph one of this
subdivision to livestock or poultry used in the production for  sale  of
tangible  personal  property  by farming, or sold to a person qualifying
for the exemption provided for in paragraph six of  subdivision  (a)  of
this section for use by such person on such livestock or poultry.
(g)  Services otherwise taxable under paragraph (3) of subdivision (c)
of section eleven hundred five shall be exempt from tax (1) if performed
upon prosthetic aids, hearing aids, eyeglasses,  artificial  devices  or
medical  equipment  when receipts from the retail sale of such items are
exempt from tax under the provisions of paragraphs  three  and  four  of
subdivision  (a)  of  this  section  or  (2) if performed upon tractors,
trailers or semi-trailers or on property installed on such vehicles  for
their  equipping,  maintenance  or  repair when receipts from the retail
sale of such items are exempt from tax under the provisions of paragraph
twenty-six of subdivision (a) of this section.
(h)  Sales  of  tangible  personal   property   by   a   railroad   in
reorganization  to  a  profitable railroad, as such terms are defined in
section one hundred two of  the  rail  reorganization  act  of  nineteen
hundred   seventy-three,  as  part  of  a  plan  of  reorganization  and
restructuring under such rail reorganization act, shall be  exempt  from
the  tax on retail sales imposed under subdivision (a) of section eleven
hundred five and the compensating use tax imposed under  section  eleven
hundred ten.
(i)  (A)  Receipts  from  the  retail  sale of a shopping paper to the
publisher of such publication shall be exempt from the  tax  imposed  by
subdivision  (a)  of  section  eleven  hundred  five of this article and
receipts from the sale of printing services performed in publishing such
paper  shall  be  exempt  from  the  tax  imposed  by  paragraph  two of
subdivision (c) of such section.
(B) For purposes of this subdivision, the term "shopping paper"  shall
mean  those  community  publications  distributed to the public, without
consideration, for purposes of advertising and  public  information.  To
qualify  as  a  shopping  paper  for  purposes  of this subdivision, the
publication must also:
(1) be distributed to the public on a community-wide basis,
(2) be published at stated intervals at least fifty times a year;
(3) having continuity as to title and general nature of  content  from
issue to issue,
(4)  contain  in  each issue news of general or community interest and
community notices or editorial comment or articles by different authors;
(5) not constitute a book, either singly or when successive issues are
put together;
(6) contain in  each  issue  advertisements  from  numerous  unrelated
advertisers;
(7)  be independently owned in that the publication is not owned by or
under the control of the owners or lessees of a  shopping  center  or  a
merchants  association  or  similar  entity  or  a  business which sells
property or services (other than advertising) and the advertisements  in
such publication are not predominantly for the property or services sold
by such business; and
(8)   meet  the  requirement  set  forth  in  paragraph  (C)  of  this
subdivision.
(C) The advertisements in such publication  shall  not  exceed  ninety
percent  of  the  printed  area  of  all issues as averaged on an annual
basis.
(D) The term "shopping paper" shall not include mail order  and  other
catalogs,  advertising  fliers,  travel brochures, house organs, theatre
programs, telephone directories, shipping and restaurant guides,  racing
tip  and  form  sheets,  shopping  center advertising sheets and similar
publications.
* (j) The exemptions provided in this section shall not apply  to  the
tax  required to be prepaid pursuant to the provisions of section eleven
hundred two of this article nor to the taxes imposed by sections  eleven
hundred  five  and  eleven  hundred  ten of this article with respect to
receipts from sales and uses of motor fuel or diesel motor fuel,  except
that  the  exemptions  provided  in  paragraphs  nine  and  forty-two of
subdivision (a) of this section shall apply to the tax  required  to  be
prepaid pursuant to the provisions of section eleven hundred two of this
article  and  to  the  taxes imposed by sections eleven hundred five and
eleven hundred ten of this article with respect to  sales  and  uses  of
kero-jet  fuel,  CNG, hydrogen and E85, provided, however, the exemption
allowed for E85 shall be subject to the additional requirements provided
in section eleven hundred two of this article with respect to  E85.  The
exemption  provided  in  subdivision  (c) of this section shall apply to
sales and uses of non-highway diesel motor fuel but only if all of  such
fuel  is  consumed  other than on the public highways of this state. The
exemption provided in subdivision (c) of this  section  shall  apply  to
sales  and  uses of non-highway diesel motor fuel for use or consumption
either in the production for  sale  of  tangible  personal  property  by
farming or in a commercial horse boarding operation, or in both but only
if  all  of  such  fuel is consumed other than on the public highways of

this state (except for the use of the public highways to reach  adjacent
farmlands  or  adjacent  lands  used  in  a  commercial  horse  boarding
operation, or both).
* NB Effective until September 1, 2026
* (j)  The  exemptions provided in this section shall not apply to the
tax required to be prepaid pursuant to the provisions of section  eleven
hundred  two of this article nor to the taxes imposed by sections eleven
hundred five and eleven hundred ten of  this  article  with  respect  to
receipts  from sales and uses of motor fuel or diesel motor fuel, except
that the exemption provided in paragraph nine of subdivision (a) of this
section shall apply to the tax required to be prepaid  pursuant  to  the
provisions  of  section  eleven  hundred  two of this article and to the
taxes imposed by sections eleven hundred five and eleven hundred ten  of
this  article  with  respect  to  sales  and  uses of kero-jet fuel. The
exemption provided in subdivision (c) of this  section  shall  apply  to
sales  and uses of non-highway diesel motor fuel but only if all of such
fuel is consumed other than on the public highways of  this  state.  The
exemption  provided  in  subdivision  (c) of this section shall apply to
sales and uses of non-highway diesel motor fuel for use  or  consumption
either  in  the  production  for  sale  of tangible personal property by
farming or in a commercial horse boarding operation, or in both but only
if all of such fuel is consumed other than on  the  public  highways  of
this  state (except for the use of the public highways to reach adjacent
farmlands  or  adjacent  lands  used  in  a  commercial  horse  boarding
operation, or both).
* NB Effective September 1, 2026
(k)  Receipts  from  the  sale  of  food eligible to be purchased with
coupons issued under or pursuant  to  the  federal  food  stamp  act  of
nineteen  hundred  seventy-seven  (7 U.S.C. § 2011 et seq.), as amended,
from  retail  food  stores  and   other   participants,   approved   for
participation  under  or  pursuant to such act, shall be exempt from the
sales and compensating use taxes imposed under this article,  when  such
food  is  purchased  with  such  coupons,  but  only so long as such act
conditions state participation in the federal food stamp program on this
state providing an exemption  from  state  and  local  sales  taxes  for
purchases of food made with coupons issued under or pursuant to such act
and this state is participating in such program.
(l)  Tangible  personal  property manufactured, processed or assembled
and  donated  by  the  manufacturer,  processor  or  assembler   to   an
organization  described  in  subdivision  (a)  of section eleven hundred
sixteen shall be exempt from tax under this article  provided  that  the
manufacturer,  processor  or  assembler offers the same kind of tangible
personal property for  sale  in  the  regular  course  of  business  and
provided  further  that the manufacturer, processor or assembler has not
made any other use of the tangible personal property which  is  donated.
Nothing  in  this  subdivision  shall  be construed to allow a refund or
credit of tax properly paid pursuant to this article.
(m) (1) The services of training and maintaining a racehorse  to  race
in  a race or race meeting held, maintained or conducted pursuant to the
racing, pari-mutuel wagering and  breeding  law  or  a  similar  law  of
another  state,  when  the  services  are  rendered  to the owner of the
racehorse by a trainer of the racehorse, shall be exempt from tax  under
this article;
(2)  Tangible  personal  property actually transferred by a trainer to
the owner of the racehorse  in  conjunction  with  the  rendering  of  a
service  that is exempt under paragraph one of this subdivision shall be
exempt from tax under this article. However, the sale to  a  trainer  of
such a racehorse of any such tangible personal property or such services

taxable  under this article shall not be deemed a sale for resale within
the meaning of paragraph four  of  subdivision  (b)  of  section  eleven
hundred  one  and  shall not be exempt from retail sales or compensating
use tax;
(3)  For purposes of this subdivision, a trainer means a horse trainer
licensed under the racing, pari-mutuel wagering and breeding  law  or  a
similar  law  of another state, and a racehorse means a horse registered
with the jockey club, the United States trotting  association,  American
quarterhorse   association   or   the  National  steeplechase  and  hunt
association or a horse, during the first twenty-four months of its life,
if it is eligible to be so registered.
(n) (1) Except as otherwise provided in this subdivision,  promotional
materials  mailed,  shipped or otherwise distributed from a point within
the state, by or  on  behalf  of  vendors  or  other  persons  to  their
customers  or  prospective  customers located outside this state for use
outside this state shall be exempt from the tax on retail sales  imposed
under   subdivision   (a)   of  section  eleven  hundred  five  and  the
compensating use tax imposed under section eleven hundred  ten  of  this
article.
(2)   Services  otherwise  taxable  under  paragraph  one  or  two  of
subdivision (c) of section eleven hundred five of this article  relating
to  mailing  lists  or  activities  directly in conjunction with mailing
lists shall be exempt from tax under this article if such  services  are
performed  on  or  directly  in  conjunction  with promotional materials
exempt under paragraph one or four of this subdivision.
(3) Receipts from the retail sale of promotional  materials,  receipts
from  every  sale, except for resale, of services described in paragraph
one or two of subdivision (c) of section eleven  hundred  five  to  such
promotional  materials and consideration given or contracted to be given
for either such materials or such services to such  materials  shall  be
exempt  from  tax  under  this  article  to  the  extent of the vendor's
separately stated charge to the purchaser of such materials or  services
for  the  vendor's  cost  to  ship  or  deliver  such  materials  to the
purchaser's customers or prospective customers by means  of  the  United
States postal service, paid by the vendor to such postal service to ship
or  deliver  such materials, but only where the vendor separately states
such charge to ship or deliver (not exceeding the vendor's United States
postal service costs) in a written contract with the purchaser or  on  a
written bill rendered to the purchaser.
(4)  Notwithstanding  any contrary provisions of paragraph one of this
subdivision, promotional  materials  which  are  printed  materials  and
promotional  materials upon which services described in paragraph two of
subdivision (c) of  section  eleven  hundred  five  have  been  directly
performed  shall  be  exempt  from  tax  under  this  article  where the
purchaser of such promotional materials mails or ships such  promotional
materials, or causes such promotional materials to be mailed or shipped,
to  its  customers  or  prospective  customers,  without  charge to such
customers or prospective customers, by means of a common carrier, United
States postal service or like delivery service.
(5) Services otherwise taxable under paragraph two of subdivision  (c)
of section eleven hundred five performed on promotional materials exempt
under  paragraph four of this subdivision shall be exempt from tax under
this article.
(6) Storing promotional materials exempt under paragraph four of  this
subdivision shall be exempt from tax under this article where the vendor
of  the  storing  service  is  also  either  the  vendor  of such exempt
promotional materials or the vendor who rendered exempt  services  under
paragraph two or five, or both, of this subdivision with respect to such

exempt promotional materials and the purchaser of the storing service is
the purchaser of such exempt promotional materials.
(7)  Mechanicals, layouts, artwork, photographs, color separations and
like property shall be exempt from tax under  this  article  where  such
property  is purchased, manufactured, processed or assembled by a person
who furnishes such property to a  printer  and  the  printer  uses  such
property  directly  and  predominantly  in the production of promotional
materials exempt  under  paragraph  four  of  this  subdivision,  or  in
performing services exempt under paragraph five of this subdivision, for
sale  by  such  printer to the person who furnished such property to the
printer.
(8) Nothing in this subdivision shall be construed to exempt  tangible
personal   property  (i)  purchased  by  a  person  (other  than  exempt
promotional materials described in paragraph four of  this  subdivision)
or  (ii)  manufactured,  processed  or  assembled  by  the manufacturer,
processor or assembler, who furnishes such property  to  the  vendor  of
promotional  materials  exempt  under  paragraph  one  or  four  of this
subdivision to be included as free gifts with  such  exempt  promotional
materials   to  be  mailed  or  shipped  to  such  purchaser's  or  such
manufacturer's, processor's  or  assembler's  customers  or  prospective
customers  or  who  otherwise  uses  such  property  in  this state, for
example, by giving or donating the property as  free  gifts  to  another
person,  unless  such  tangible  personal property is mailed, shipped or
otherwise distributed from a point within this state to  such  customers
or prospective customers located outside this state for use outside this
state.
(o) Services otherwise taxable under subdivision (c) of section eleven
hundred  five  or  under section eleven hundred ten shall be exempt from
tax under this article where  performed  on  computer  software  of  any
nature;  provided,  however,  that where such services are provided to a
customer in conjunction with the sale of tangible personal property  any
charge  for  such  services  shall  be  exempt  only when such charge is
reasonable and separately stated on an invoice or other statement of the
price given to the purchaser.
(q) Services otherwise taxable under paragraph  three  of  subdivision
(c)  of  section eleven hundred five or under section eleven hundred ten
of this article, and tangible personal property purchased  and  used  by
the  person  who  sells such services in performing such services, where
such property becomes a physical component part  of  the  property  upon
which  the  services  are performed, shall be exempt from tax under this
article where such services are performed on a barge which is  not  self
propelled,  has a cargo capacity of at least one thousand short tons, is
used exclusively by the owner,  lessee  or  operator  of  the  barge  to
transport  goods  or  other  property  in  the  conduct of such person's
business and is primarily engaged in interstate or foreign commerce.
(r)  Receipts  from  the  sale  of  alarm   call   services   designed
specifically  to  respond  to  medical  emergencies  and the use of such
services, otherwise taxable under paragraph eight of subdivision (c)  of
section  eleven  hundred  five or under clause (C) of subdivision (a) of
section eleven hundred ten of this article, shall be  exempt  from  such
taxes.
* (s)  The  exemptions provided in this section shall not apply to the
tax required to be prepaid pursuant to the provisions of section  eleven
hundred three of this article.
* NB There are 2 sub (s)'s
* (s)  (1)  The  sale  of  any  good  or  service  necessary  for  the
acquisition, sustenance or maintenance of a guide dog, a hearing dog  or
a  service  dog,  as  defined  in  section  one  hundred  eight  of  the

agriculture and markets law, which is utilized  by  any  person  with  a
disability, shall be exempt from taxation pursuant to this article.
(2)  For  the purposes of this subdivision, "person with a disability"
shall mean any person with a disability  as  that  term  is  defined  in
subdivision   twenty-one  of  section  two  hundred  ninety-two  of  the
executive law who uses a guide dog, hearing dog, or service  dog  to  do
work  or  perform tasks for such person, with respect to such disability
and for which such dog is trained.
(3) The commissioner shall create and implement a means of identifying
persons who make purchases  which  shall  be  exempt  pursuant  to  this
subdivision.  Such  persons  shall  include persons who have a dependent
with a disability, and who makes purchases on behalf of such  dependent.
Only  persons  presenting such means of identification shall receive the
exemption  granted  pursuant  to  this  subdivision.  Furthermore,   the
commissioner  shall  promulgate  any  rules and regulations necessary to
implement the provisions of this subdivision.
* NB There are 2 sub (s)'s
(t) (1) Receipts of a car wash facility from every  sale,  except  for
resale,  of  the service of washing, waxing or vacuuming a motor vehicle
or  other  tangible  personal  property  and  consideration   given   or
contracted  to  be  given for such service at such a facility, where (i)
the motor vehicle or other tangible personal property is  washed,  waxed
or  vacuumed  at  such  facility  by  means exclusively of coin-operated
equipment at such facility of the vendor providing the service; and (ii)
neither the vendor nor any employee of the vendor  assists  in  washing,
waxing  or  vacuuming  the  motor  vehicle  or  other  tangible personal
property; and (iii) the purchaser or user of the service  washes,  waxes
or  vacuums  such  person's  motor  vehicle  or  other tangible personal
property at such a facility, or (iv) the motor vehicle or other tangible
personal property is washed, waxed or vacuumed  by  automated  equipment
without  assistance  by  the  purchaser or user of the service, shall be
exempt from tax under this article, to the extent of the amount of money
or value, in money, of tokens deposited in such coin-operated  equipment
by the purchaser of the service.
(2)   Except  to  the  extent  exempt  under  paragraph  one  of  this
subdivision receipts from every sale, except for resale, of the  service
of  vacuuming  a  motor  vehicle or other tangible personal property and
consideration given or contracted to be given for  such  service,  where
the purchaser or user of the service vacuums such person's motor vehicle
or  other  tangible  personal  property at the facility where the vacuum
equipment is located, by means exclusively  of  coin-operated  equipment
and  neither  the  vendor operating the facility nor any employee of the
vendor assists the purchaser in vacuuming the vehicle or other  tangible
personal  property,  shall be exempt from tax under this article, to the
extent of the amount of money or value, in money, of tokens deposited in
such coin-operated equipment by the purchaser of the service.
(3)  For  purposes  of  this  subdivision,  the  term  "coin-operated"
includes coin-operated, currency-operated or token-operated and the term
"motor vehicle" shall mean a motor vehicle as defined in subdivision (f)
of section eleven hundred thirty-two of this article.
(u)  Receipts  from  every sale of the services described in paragraph
three of subdivision (c) of section eleven hundred five of this  article
to  omnibuses,  parts,  equipment  and  lubricants exempt from tax under
paragraph thirty-two of subdivision (a) of this section shall be  exempt
from  tax  under  this  article.  Where  receipts  from  the  sale of or
consideration given or contracted to be given  for  the  purchase  of  a
service  have  been  exempted  under  this subdivision, such receipts or
consideration shall not also qualify for the refund or credit  described

in  subdivision  (b) of section eleven hundred nineteen of this article;
where  any  or  all  of  the  tax  on  receipts  from  the  sale  of  or
consideration  given  or  contracted  to  be given for the purchase of a
service  has  been  refunded  or credited under such subdivision (b), no
part of such receipts  or  consideration  shall  be  exempt  under  this
subdivision.
(v)  Receipts  from  the  sale  of  Internet access service, including
start-up charges, and the use of such service, shall be exempt from  the
taxes  imposed under this article. For purposes of this subdivision, the
term "Internet access service"  shall  mean  the  service  of  providing
connection  to  the  Internet,  but  only where such service entails the
routing of Internet traffic by means of accepted Internet protocols. The
provision of communication or navigation software,  an  e-mail  address,
e-mail  software,  news  headlines,  space  for  a  website  and website
services, or other such services, in conjunction with the  provision  of
such  connection  to  the  Internet,  where  such  services  are  merely
incidental to the provision of such connection, shall be  considered  to
be part of the provision of Internet access service.
* (w)  Receipts from the sale of gas or electricity or gas or electric
service of whatever nature and consideration given or contracted  to  be
given  for,  or  for  the  use of, gas or electricity or gas or electric
service of whatever nature purchased for use or consumption directly and
exclusively to provide  gas  or  electric  service  of  whatever  nature
consisting  of  operating  a gas pipeline or gas distribution line or an
electric transmission or distribution line and  ensuring  the  necessary
working  pressure in an underground gas storage facility shall be exempt
from sales and compensating use taxes  imposed  by  this  article.  Such
exempt  gas or electricity or gas or electric service of whatever nature
shall include, but shall not be limited to, such gas or  electricity  or
gas or electric service of whatever nature used or consumed directly and
exclusively  to  (1) ensure necessary working pressure in a gas pipeline
used to transport, transmit or distribute gas, (2)  operate  compressors
used  to  transport,  transmit  or  distribute  gas  through  such a gas
pipeline or distribution  line  or  used  to  ensure  necessary  working
pressure  in such a storage facility, (3) operate heaters to prevent gas
in such a pipeline or  distribution  line  from  freezing,  (4)  operate
equipment  which  removes  impurities  and  moisture  from gas in such a
pipeline or distribution line, (5)  operate  substations  and  equipment
related   to  electric  transmission  and  distribution  lines  such  as
transformers, capacitors, meters, switches,  communication  devices  and
heating  and  cooling  equipment,  and  (6)  ensure  the  reliability of
electricity or electric service transmitted or distributed through  such
lines,   for  example,  by  operating  reserve  capacity  machinery  and
equipment.
* NB There are 2 sub. (w)'s
* (w) Receipts from sales by  a  senior  citizen  independent  housing
community  of  food  or  drink (other than beer, wine or other alcoholic
beverages) for consumption on the premises of such community (1) to  its
residents  and (2) to guests of such residents, provided that the dining
facility where food and drink is served  to  such  residents  and  their
guests  is  not open to the public, shall be exempt from the tax imposed
by subdivision (d) of section  eleven  hundred  five  of  this  article,
provided  that  any  such food or drink shall be exempt only where it is
served at the dining  facility  at  such  community  or  served  to  the
residents  or  the  residents'  guests  in the residents' rooms. For the
purposes of this subdivision, the term "senior citizen" means  a  person
at   least  fifty-five  years  of  age  and  the  term  "senior  citizen
independent housing community" means a  residential  facility,  with  or

without  additional facilities such as recreational facilities, which is
designed  for  senior  citizens,  the  residents  of  which  are  senior
citizens,  spouses  of  such  senior  citizens  or any other person, not
necessarily  related, who has resided with a senior citizen for at least
six months and persons hired to provide live-in, long  term  care  to  a
resident and who are actually providing such care to such a resident for
compensation. Nothing in this subdivision shall be construed to apply to
food  or  drink sold or served at a hotel, motel, rooming house or other
similar establishment or  at  a  restaurant,  tavern  or  other  similar
establishment.  The  exemption provided by this subdivision shall not be
construed to apply to food or drink sold through vending machines.
* NB There are 2 sub. (w)'s
(x) Receipts from every sale of, and consideration given or contracted
to be given for, or for the use  of,  the  following  tangible  personal
property  and  services  shall  be exempt from the taxes imposed by this
article:
(1) Tangible personal property for use  or  consumption  directly  and
predominantly   in   production   of   live  dramatic  or  musical  arts
performances in a theater or other similar place of  assembly  (but  not
including a roof garden, cabaret or other similar place), with a seating
capacity  of one hundred or more chairs that are rigidly anchored to the
construction or fixed  in  place  so  as  to  prevent  movement  in  any
direction,  but  only  where  it  can be shown at the time such tangible
personal  property  is  purchased  that  such  performances  are  to  be
presented  to  the  public  in  such theater or other similar place on a
regular basis of at least five performances per week for a period of  at
least  two consecutive weeks, the content of each such performance shall
be the same and a charge is or is to be made for admission to the  place
where  such  performances  occur.  For purposes of this subdivision, the
term "place of assembly" shall mean a place of assembly with a stage  in
which  scenery  and  scenic  elements  are used, as described in section
27-232 and subdivision (a) of section 27-255 of the administrative  code
of  the  city  of  New  York  (as  such section and subdivision exist on
January first, nineteen hundred ninety-eight), and for which an approved
seating plan is required to be kept, as described in section  27-528  of
the  administrative code of the city of New York (as such section exists
on January first, nineteen hundred ninety-eight), whether  or  not  such
theater  or other similar place is located in such city. Nothing in this
paragraph shall be construed to exempt tangible personal property  which
is  permanently  affixed to, or becomes an integral component part of, a
structure, building, or real property.
(2) Services described in paragraph two or three of subdivision (c) of
section eleven hundred five of this article when rendered  with  respect
to property exempt under paragraph one of this subdivision.
(y) Services otherwise taxable under paragraph three, five or eight of
subdivision  (c)  of section eleven hundred five or under section eleven
hundred ten of this  article  shall  be  exempt  from  any  tax  imposed
pursuant to such provisions where such services are rendered directly to
or  in  relation  to  the property exempt from tax pursuant to paragraph
thirty-seven of subdivision (a) of this section, provided however  where
any  such  services  are rendered to property or in relation to property
which was in part not exempt  under  such  paragraph  thirty-seven,  the
commissioner  shall  provide  for  a  method  of  allocation to exempt a
portion of such services.
(aa)(1) The following services shall be  exempt  when  rendered  to  a
broadcaster in connection with its broadcasting business:
(i)  The  services  described  in  paragraph two of subdivision (c) of
section eleven hundred five of this article and the services of editing,

dubbing, and mixing when performed in connection  with  the  production,
post-production  or  transmission of live or recorded programs described
in subparagraph (A) of paragraph thirty-eight of subdivision (a) of this
section.
(ii)  The  services described in paragraph three of subdivision (c) of
section eleven hundred five  of  this  article  when  performed  on  the
tangible  personal  property  described  in  paragraph  thirty-eight  of
subdivision (a) of this section.
(iii) The services described in paragraph five of subdivision  (c)  of
section  eleven  hundred five of this article when performed on property
described in paragraph thirty-eight of subdivision (a) of  this  section
which  subsequent  to its installation has become an addition or capital
improvement to real property,  property  or  land,  as  such  terms  are
defined in the real property tax law.
(2)  For  purposes  of  this  subdivision:  the  terms  "broadcaster",
"programs", and "recorded programs" shall have the same meaning as  that
ascribed to those terms in subparagraph (C) of paragraph thirty-eight of
subdivision (a) of this section.
(bb)  1. Receipts from the sale of services described in paragraph two
or three of subdivision (c) of  section  eleven  hundred  five  of  this
article,  and  consideration given or contracted to be given for, or for
the use of, such services, shall be exempt from tax under  this  article
when   rendered   with   respect  to  property  exempt  under  paragraph
thirty-nine of subdivision (a) of this section.
2. Fuel, gas, electricity, refrigeration and steam, and gas, electric,
refrigeration  and  steam  service  of  whatever  nature  for   use   or
consumption  directly  and  exclusively  in the production of a film for
sale, as described in paragraph thirty-nine of subdivision (a)  of  this
section,  shall  be exempt from the taxes imposed under subdivisions (a)
and (b) of section eleven hundred five  and  the  compensating  use  tax
imposed under section eleven hundred ten of this article.
(cc)  Notwithstanding  any  other  provision  of  law to the contrary,
receipts from the sale of mobile telecommunications service  by  a  home
service  provider shall be exempt from the taxes imposed by subparagraph
(B) of paragraph one and paragraph two of  subdivision  (b)  of  section
eleven  hundred  five  of  this article if the mobile telecommunications
customer's place of primary use is within a taxing jurisdiction  outside
this state.
(dd)   (1)   Services  otherwise  taxable  under  paragraph  three  of
subdivision (c) of section eleven hundred five or under  section  eleven
hundred  ten  of  this article, and tangible personal property purchased
and used by the person  who  sells  such  services  in  performing  such
services,  where  such property becomes a physical component part of the
property upon which the services are performed or where such property is
a lubricant applied to aircraft, shall be exempt  from  tax  under  this
article where such services are performed on aircraft.
(2)  The service of storing an aircraft provided by a person who sells
a service exempt under paragraph one  of  this  subdivision,  when  such
storing  is  rendered  in conjunction with, and during the rendering of,
such service to such aircraft, shall be  exempt  from  the  tax  imposed
under  paragraph  four of subdivision (c) of section eleven hundred five
of this article.
* (ee) The following shall be exempt from tax under this article:  (1)
Receipts  from the retail sale of, and consideration given or contracted
to be given for, or for the use of,  residential  solar  energy  systems
equipment  and  the service of installing such systems. For the purposes
of this subdivision, "residential solar energy systems equipment"  shall
mean  an  arrangement  or  combination  of  components  installed  in  a

residence that utilizes solar radiation to produce  energy  designed  to
provide heating, cooling, hot water and/or electricity. Such arrangement
or  components  shall  not include equipment that is part of a non-solar
energy  system  or  which  uses  any  sort  of  recreational facility or
equipment as a storage medium.
(2) Receipts from the  sale  of  electricity  by  a  person  primarily
engaged  in the sale of solar energy system equipment and/or electricity
generated by such equipment pursuant to a written agreement under  which
such  electricity  is  generated  by  residential  solar  energy  system
equipment that is: (A) owned by a person other  than  the  purchaser  of
such electricity; (B) installed on residential property of the purchaser
of such electricity; and (C) used to provide heating, cooling, hot water
or electricity to such property.
* NB There are 2 sb (ee)'s
* (ee)  (1)  Tangible  personal property purchased by a tenant for use
directly and exclusively  to  furnish  and  equip  the  tenant's  leased
premises  for  use  as  commercial office space shall be exempt from the
taxes imposed by sections eleven hundred five and eleven hundred ten  of
this  article.  Provided,  however,  no exemption shall exist under this
paragraph unless  such  tangible  personal  property  is  to  become  an
integral  component  part  of the building in which such leased premises
are located.
(2) Tangible personal property purchased by a tenant or  landlord  for
use  directly  and  exclusively  in adding to, altering or improving the
tenant's leased premises for use as commercial  office  space  shall  be
exempt from the taxes imposed by sections eleven hundred five and eleven
hundred ten of this article. Provided, however, no exemption shall exist
under this paragraph unless such tangible personal property is to become
an integral component part of the building in which such leased premises
are located.
(3)  Tangible personal property sold to a contractor, subcontractor or
repairperson for use directly and exclusively in adding to, altering  or
improving  a tenant's leased premises for use as commercial office space
shall be exempt from the taxes imposed by sections eleven  hundred  five
and  eleven hundred ten of this article. Provided, however, no exemption
shall exist under this paragraph unless such tangible personal  property
is  to  become  an integral component part of the building in which such
leased premises are located.
(4) The service of installing property exempt under paragraph  one  or
two  of  this  subdivision  shall  be  exempt  from  the  tax imposed by
paragraph three of subdivision (c) of section  eleven  hundred  five  of
this article.
(5)  The  exemptions in this subdivision shall apply only to purchases
or sales made, uses occurring and services rendered  during  the  period
commencing  on  the  first day of the tenant's lease term and ending one
year later, provided that any such property must  be  delivered  to  the
tenant's  leased  premises  for  use  at  or  in such premises, and such
services must be rendered there in full, no later than ninety days after
the end of such year; and  provided,  further,  that,  with  respect  to
leased or rented tangible personal property, such exemptions shall apply
only  to  lease or rental payments required to be paid during such year.
Nothing in this  subdivision  shall  be  construed  to  exempt  tangible
personal  property  for  use  in  erecting  or  adding to a structure or
building of a landlord.
(6) When applying the exemptions in paragraphs one  and  two  of  this
subdivision  with  respect to leased premises located in the World Trade
Center site, the world financial center and the Battery Park city  area,
such  paragraphs  shall  be  read  without regard to the requirement set

forth in the last sentence of each such paragraph that tangible personal
property is to become an integral component  part  of  the  building  in
which such leased premises are located.
(7) For purposes of this subdivision:
(A)  "Tenant" means a person who, as lessee, enters into a space lease
with a landlord for a term of ten years or more commencing on  or  after
September first, two thousand five, but not later than, in the case of a
space lease with respect to leased premises located in eligible areas as
defined  in  clause (i) of subparagraph (D) of this paragraph, September
first, two thousand twenty-seven and, in the case of a space lease  with
respect  to  leased  premises  located  in  eligible areas as defined in
clause (ii) of  subparagraph  (D)  of  this  paragraph  not  later  than
September  first,  two  thousand  twenty-nine,  of  premises  for use as
commercial office space in buildings located or to  be  located  in  the
eligible  areas.  A  person  who  currently occupies premises for use as
commercial office space under an existing lease in  a  building  in  the
eligible   areas   shall  not  be  eligible  for  exemption  under  this
subdivision unless such existing lease, in the case  of  a  space  lease
with  respect to leased premises located in eligible areas as defined in
clause (i) of subparagraph (D) of this paragraph  expires  according  to
its  terms  before  September  first,  two thousand twenty-seven or such
existing lease, in the case of a space  lease  with  respect  to  leased
premises  located  in  eligible  areas  as  defined  in  clause  (ii) of
subparagraph (D) of this paragraph and such person enters into  a  space
lease,  for a term of ten years or more commencing on or after September
first, two thousand five, of premises for use as commercial office space
in a building located or to be located in the eligible  areas,  provided
that  such  space  lease  with  respect  to  leased  premises located in
eligible areas as defined in clause (i)  of  subparagraph  (D)  of  this
paragraph   commences  no  later  than  September  first,  two  thousand
twenty-seven, and provided that such space lease with respect to  leased
premises  located  in  eligible  areas  as  defined  in  clause  (ii) of
subparagraph (D) of this paragraph commences  no  later  than  September
first,  two  thousand twenty-nine and provided, further, that such space
lease shall expire no earlier than ten years after the expiration of the
original lease.
(B) "Leased premises" means the premises within a building to be  used
as  commercial  office space under a lease described in subparagraph (A)
of this paragraph, excluding any common areas and any other area outside
such office space.
(C) "Landlord" means the person, unrelated by ownership to  a  tenant,
who leases leased premises to that tenant.
(D)  "Eligible areas" mean: **(i) the area in the borough of Manhattan
bounded by Murray street on the north starting at  the  intersection  of
West street and Murray street; running easterly along the center line of
Murray street, connecting through City Hall Park with the center line of
Frankfort  street  and  running  easterly  along  the  center  lines  of
Frankfort and Dover streets to the  intersection  of  Dover  street  and
South street; running southerly along the center line of South street to
Peter  Minuit Plaza; connecting through Peter Minuit Plaza to the center
line of State street and running northwesterly along the center line  of
State  street  to  the  intersection  of State street and Battery Place;
running  westerly  along  the  center  line  of  Battery  Place  to  the
intersection  of  Battery  Place  and West street; and running northerly
along the center line of West street to the intersection of West  street
and  Murray  street.  In  addition,  "eligible  area"  shall include the
"Battery Park project area"  as  defined  in  section  nineteen  hundred
seventy-two of the public authorities law, including the world financial

center.  Any  tax  lot  that  is partly located inside the eligible area
shall be deemed to be entirely located inside such area, and
** NB Repealed December 1, 2028
(ii)  the  World Trade Center site, the World financial center and the
Battery Park city area as defined as follows:
(a) "World Trade Center site" means the area of the former complex  of
seven  buildings (known as numbers one through seven world trade center)
around a central plaza, near the south end of the county of New York  in
the  downtown financial district, which were destroyed or damaged beyond
repair in the attacks of September eleventh, two thousand one.
(b) "World financial center" means the complex of buildings  known  as
numbers  one  through  four  world  financial  center, in an area in the
county of New York bordered by West street, the Hudson River, and  Vesey
and Liberty streets.
(c)  "Battery Park city area" means the "Battery Park project area" as
defined  in  section  nineteen  hundred  seventy-two   of   the   public
authorities law, including the world financial center.
(8)  Notwithstanding  any  provision  of  law  to  the  contrary, this
subdivision shall also apply to the  taxes  imposed  by  section  eleven
hundred  seven  and  the taxes imposed by section eleven hundred nine of
this article, but shall not apply to the taxes imposed by section eleven
hundred eight of this article or pursuant to the  authority  of  article
twenty-nine  of  this  chapter  other  than taxes imposed by a city of a
million or more pursuant to the authority of subdivision (a) of  section
twelve hundred ten of such article twenty-nine.
* NB Repealed December 1, 2030
* NB There are 2 sb (ee)'s
(ff)  Receipts  from retail sales of tangible personal property by any
gift shop located in a veteran's home described in title thirty-eight of
the United States Code shall be exempt from the taxes  imposed  by  this
article.
(gg)  (1)  Receipts  from  the  sale of an electronic news service and
consideration given or contracted to be given for, or for the use of, an
electronic news service shall  be  exempt  from  the  taxes  imposed  by
paragraph  one or nine of subdivision (c) of section eleven hundred five
of this article and clause (C) of  subdivision  (a)  of  section  eleven
hundred  ten  of  this  article if the receipts from the sale of, or the
consideration given for, or for the use of, the electronic news  service
does  not  exceed  the  cap  amount  as  defined in subparagraph (ii) of
paragraph thirty-seven of subdivision (b) of section eleven hundred  one
of  this  article.  If  the  subscription  period of the electronic news
service is  other  than  a  year,  the  cap  amount  shall  be  adjusted
proportionately  in  determining  whether the subscription price exceeds
the cap amount. If the contract for the  sale  of  the  electronic  news
service  grants  more  than  one person the right to view the electronic
news service, the receipts from the sale of, or the consideration  given
for, or for the use of, the service will be deemed not to exceed the cap
amount  only  if the listed selling price for an individual subscription
on the day the contract commences does not exceed the cap amount.
(2)  Receipts  from  the  sale  of  an   electronic   periodical   and
consideration  given,  or contracted to be given for, or for the use of,
an electronic periodical shall be  exempt  from  the  taxes  imposed  by
paragraph  one or nine of subdivision (c) of section eleven hundred five
and clause (C) of subdivision (a) of section eleven hundred ten of  this
article.
(3)  If  an  electronic  periodical  is  sold  together with any other
components that are taxable under this article (other than an electronic
news service) for a single price, the exemption in paragraph two of this

subdivision shall not apply  to  the  receipts  from  the  sale  of,  or
consideration  given,  or  contracted to be give for, or for the use of,
the electronic periodical and such other components  unless  the  vendor
sells such electronic periodical and such other components separately in
the  regular  course  of  business.  If the requirement in the preceding
sentence is satisfied, then the exemption will apply to an amount  equal
to the bundled price multiplied by a fraction, the numerator of which is
the  price  of  the  electronic  periodical when sold separately and the
denominator of  which  is  the  sum  of  the  price  of  the  electronic
periodical when sold separately and the price of the other components of
the transaction when sold separately.
(4)  If  an  electronic  news  service  is  sold  together  with other
components for a single price, the exemption in paragraph  one  of  this
subdivision  shall  not  apply  to  the  receipts  from  the sale of, or
consideration given, or contracted to be given, for, or for the use  of,
the  electronic news service and the other components in the transaction
unless one of the following exceptions applies and only  to  the  extent
indicated:
(i)  The  provider  of the electronic news service does not separately
sell the electronic news service in the regular course of business,  the
other  components  are  not  taxable under this article, and the bundled
price is less than the cap amount, in which case the  exemption  applies
to the full bundled price; or
(ii)  The provider of the electronic news service sells the electronic
news service and  each  of  the  other  components  of  the  transaction
separately  in  the  regular  course  of  business,  whether  or not the
components are taxable under this article, and the separate price of the
electronic  news  service  does  not  exceed  the  cap  amount.  If  the
conditions  in  this  subparagraph  are  met,  the exemption provided by
paragraph one of this subdivision will apply only to an amount equal  to
the  bundled  price  multiplied by a fraction, the numerator of which is
the price of the electronic news service when  sold  separately  in  the
regular  course  of business, and the denominator of which is the sum of
the price of the electronic news service when  sold  separately  in  the
regular  course  of business and the prices of the other components when
sold separately in the regular course of  business;  provided,  however,
that  in  no  case shall the exempt amount be greater than the amount of
the charge for the electronic news service when sold separately  in  the
regular course of business.
(5)  For  the  purposes  of this subdivision "bundled price" means the
price at which an electronic news service or an electronic periodical is
sold together with any other components for one price;  and  "component"
means  any  property,  service, or other item of whatever nature that is
sold together with an electronic news service or  electronic  periodical
for one price.
(6)  Nothing  in  this  subdivision  shall  exempt, or be construed to
exempt, any separate charge by the vendor of an electronic news  service
or  electronic  periodical  for other information services, or any other
property or service subject to tax under this  article,  that  does  not
constitute an electronic news service or electronic periodical.
(hh)  Receipts from the sale of transportation service consisting of a
HAIL vehicle trip, as the term "HAIL vehicle trip" is defined in article
twenty-nine-A of this chapter, shall be exempt from the tax  imposed  by
paragraph  ten of subdivision (c) of section eleven hundred five of this
article, if such trip originates in a city of  a  million  or  more  and
terminates   anywhere   within   the   territorial   boundaries  of  the
metropolitan commuter transportation district and is subject to the  tax
on HAIL vehicle trips imposed by such article twenty-nine-A.
* (ii)  The following shall be exempt from tax under this article: (1)
Receipts from the retail sale of, and consideration given or  contracted
to  be  given  for,  or  for the use of, commercial solar energy systems
equipment and the service of installing such systems. For  the  purposes
of  this  subdivision, "commercial solar energy systems equipment" shall
mean  an  arrangement  or  combination  of  components  installed   upon
non-residential  premises that utilize solar radiation to produce energy
designed to provide heating, cooling, hot water and/or electricity. Such
arrangement or components shall not include equipment that is part of  a
non-solar energy system.
(2)  Receipts  from  the  sale  of  electricity  by a person primarily
engaged in the sale of solar energy system equipment and/or  electricity
generated  by such equipment pursuant to a written agreement under which
the electricity is generated by commercial solar energy system equipment
that is: (A) owned  by  a  person  other  than  the  purchaser  of  such
electricity;  (B)  installed  on  the  non-residential  premises  of the
purchaser of such electricity; and (C) used to provide heating, cooling,
hot water or electricity to such premises.
* NB There are 2 sb (ii)'s
* (ii) Receipts from sales of and fees associated with water and sewer
service line protection programs sold to owners of residential  property
shall be exempt from the taxes imposed by this article.
* NB There are 2 sb (ii)'s
* (jj)  Notwithstanding  any  other  provision  of  this  article: (1)
Receipts in excess of two hundred thirty  thousand  dollars  from  every
sale  of,  and consideration given or contracted to be given for, or for
the use of, a vessel shall be exempt from  the  taxes  imposed  by  this
article.  For purposes of this subdivision, "vessel" shall have the same
meaning as such term is defined in section twenty-two hundred  fifty  of
the  vehicle  and  traffic  law  and  any  outboard motor or trailer, as
defined in section one hundred fifty-six  of  such  law,  when  sold  in
conjunction with such vessel.
(2)  For  purposes of subdivision (b) of section eleven hundred eleven
of this article, the purchase  price,  current  market  value,  or  fair
rental value, as the case may be, of a vessel purchased by a resident of
New  York state outside of this state for use outside of this state that
subsequently becomes subject to the compensating use tax  imposed  under
this  article  shall be deemed not to exceed two hundred thirty thousand
dollars.
(3) For purposes of subdivision (i) of section eleven  hundred  eleven
of  this article, receipts from, or consideration given or contracted to
be given for, the lease of a vessel that is subject to such  subdivision
(i)  in  excess  of  two hundred thirty thousand dollars shall be exempt
from the calculation of tax due under such subdivision (i).
(4) For purposes of paragraph one of subdivision (q) of section eleven
hundred eleven of this article, the limitations on exclusions  from  the
definition  of  retail  sale  in paragraph one of such subdivision shall
apply only to the first two hundred thirty thousand dollars of  receipts
from  every  sale  of,  or consideration given or contracted to be given
for, or for the use of, a vessel.
(5) For purposes of paragraph two of subdivision (q) of section eleven
hundred eleven of this article, the purchase price or market  value,  as
the  case may be, of a vessel subject to tax under paragraph two of such
subdivision (q) shall  be  deemed  not  to  exceed  two  hundred  thirty
thousand dollars.
(6) For purposes of subdivision two of section eleven hundred eighteen
of  this  article, the limitation on the exclusion from compensating use
tax in such subdivision two  with  respect  to  qualified  property,  as

defined  in  such subdivision, shall apply only to the first two hundred
thirty thousand dollars of consideration given or contracted to be given
for, or for the use of, a vessel.
(7)  For  purposes  of  paragraph  (a) of subdivision seven of section
eleven hundred eighteen of this article, the refund or credit  allowable
under  paragraph  (a)  of  such subdivision seven shall be computed only
with regard to tax legally due and paid to another state  on  the  first
two hundred thirty thousand dollars of the purchase price.
(8) Except as otherwise provided herein, this subdivision shall not be
deemed to limit any other exemption, exclusion or credit in this article
relating to a vessel.
* NB There are 2 sb (jj)'s
* (jj)  Tangible personal property or services otherwise taxable under
this article sold to a related person shall not be subject to the  taxes
imposed   by  section  eleven  hundred  five  of  this  article  or  the
compensating use tax imposed under section eleven hundred  ten  of  this
article  where the purchaser can show that the following conditions have
been met to the extent they are applicable: (1)(i) the  vendor  and  the
purchaser  are  referenced as either a "covered company" as described in
section 243.2(f) or a "material entity" as described in section 243.2(l)
of the Code of Federal Regulations in a resolution plan  that  has  been
submitted  to  an  agency  of  the  United  States  for  the  purpose of
satisfying subparagraph 1  of  paragraph  (d)  of  section  one  hundred
sixty-five  of the Dodd-Frank Wall Street Reform and Consumer Protection
Act (the "Act") or any  successor  law,  or  (ii)  the  vendor  and  the
purchaser are separate legal entities pursuant to a divestiture directed
pursuant  to  subparagraph  5  of  paragraph  (d) of section one hundred
sixty-five of such act or any successor law; (2) the sale would not have
occurred between such related entities were it not for  such  resolution
plan or divestiture; and (3) in acquiring such property or services, the
vendor  did not claim an exemption from the tax imposed by this state or
another state based on the vendor's intent to resell  such  services  or
property.  A  person  is  related to another person for purposes of this
subdivision if the person bears a relationship to such person  described
in  section  two  hundred  sixty-seven of the internal revenue code. The
exemption provided by this subdivision shall not apply  to  sales  made,
services  rendered, or uses occurring after June thirtieth, two thousand
twenty-five, except with respect to sales made,  services  rendered,  or
uses  occurring  pursuant to binding contracts entered into on or before
such date; but  in  no  case  shall  such  exemption  apply  after  June
thirtieth, two thousand twenty-eight.
* NB There are 2 sb (jj)'s
* (kk)  Rent  paid  by  a room remarketer to an operator that is not a
room remarketer for an occupancy that the  room  remarketer  intends  to
provide  to an occupant for rent shall be exempt from the hotel unit fee
imposed by section eleven hundred four  of  this  article  and  the  tax
imposed  by  subdivision  (e)  of  section  eleven  hundred five of this
article, provided that such room remarketer furnishes  such  operator  a
certificate  in  such  form  and  containing  such information as may be
prescribed by the commissioner. The exemption certificate  provided  for
by  this  subdivision  shall  be  administered  by  the  commissioner in
conformity with the  rules  for  exemption  or  resale  certificates  in
subparagraph  (i)  of paragraph one of subdivision (c) of section eleven
hundred thirty-two of this article.
* NB There are 2 sb (kk)'s
* (kk) The following shall be exempt from tax under this article:  (1)
Receipts  from the retail sale of, and consideration given or contracted
to be given for, or for the use of,  commercial  fuel  cell  electricity

generating   systems   equipment  and  the  service  of  installing  and
maintaining such systems. For the purposes of  this  subdivision,  "fuel
cell  electricity  generating  systems equipment" shall mean an electric
generating  arrangement  or  combination  of  components  installed upon
non-residential premises that utilize  solid  oxide,  molten  carbonate,
proton  exchange  membrane  or  phosphoric  acid  fuel  cell, or for the
purposes of this section only, linear generator.
(2) Receipts from the sale of hydrogen gas or electricity by a  person
primarily engaged in the sale of fuel cell electricity generating system
equipment  and/or  electricity generated by such equipment pursuant to a
written agreement under which the electricity is generated by commercial
fuel cell electricity generating system equipment that is: (A) owned  by
a  person other than the purchaser of such electricity; (B) installed on
the non-residential premises of the purchaser of such  electricity;  (C)
placed  in  service; and (D) used to provide heating, cooling, hot water
or electricity to such premises.
* NB There are 2 sb (kk)'s
* (ll) The following shall be exempt from tax under this article:  (1)
Receipts  from the retail sale of, and consideration given or contracted
to be given for, or for the use of, residential energy  storage  systems
equipment  and  the service of installing such systems. For the purposes
of this subdivision,  "residential  energy  storage  systems  equipment"
shall  mean  an  arrangement or combination of components installed in a
residence that stores electricity for use at a  later  time  to  provide
heating, cooling, hot water and/or electricity.
(2)  Receipts  from  the  sale  of  electricity  by a person primarily
engaged  in  the  sale  of  energy  storage  system   equipment   and/or
electricity  generated by such equipment pursuant to a written agreement
under which such electricity is generated by residential  energy  system
storage  equipment  that  is:  (A)  owned  by  a  person  other than the
purchaser of such electricity; (B) installed on residential property  of
the  purchaser  of  such  electricity;  and (C) used to provide heating,
cooling, hot water or electricity.
* NB Effective June 1, 2024
* NB Repealed June 1, 2026