Section 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)  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.  The  food  and drink excluded from the exemption provided by this
  paragraph under subparagraphs (i), (ii)  and  (iii)  of  this  paragraph
  shall be exempt under this paragraph when sold for seventy-five cents or
  less through any vending machine activated by the use of coin, currency,
  credit  card  or debit card. With the exception of the provision in this
  paragraph providing for an exemption for certain food or drink sold  for
  seventy-five  cents  or  less  through  vending machines, nothing herein
  shall be construed as exempting food or drink from the tax imposed under
  subdivision (d) of section eleven hundred five.
    (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.
    (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.
    (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.
    (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.
    (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.
    (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.
    * (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 furnished by the official agent of a farm
  winery, winery, wholesaler, or  importer  at  a  wine  tasting  held  in
  accordance  with section eighty of the alcoholic beverage control law to
  a customer or prospective customer who consumes such wine at  such  wine
  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 film, tape, disc or any other physical media.
    (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.
    * NB Repealed September 1, 2011
    (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.
    (b)  (i)  Telephony and telegraphy and telephone and telegraph service
  used by newspapers, 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  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) 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  pargraph  (4)  of
  subdivision  (b)  of  section eleven hundred one and shall not be exempt
  from retail sales tax.
    (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 diesel motor fuel which is not enhanced  diesel  motor
  fuel but only if all of such fuel is consumed other than on the highways
  of this state, provided, however, this exemption shall in no event apply
  to  a  sale  of diesel motor fuel which involves a delivery at a filling
  station or into a repository which is equipped  with  a  hose  or  other
  apparatus  by  which  such fuel can be dispensed into the fuel tank of a
  motor vehicle. The exemption provided in subdivision (c) of this section
  shall apply to sales and uses of no more than four thousand five hundred
  gallons of  diesel  motor  fuel  in  a  thirty-day  period  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 highways
  of  this  state  (except  for  the use of the highways to reach adjacent
  farmlands  or  adjacent  lands  used  in  a  commercial  horse  boarding
  operation,   or  both),  provided,  however,  such  exemption  shall  be
  applicable to the sale or use of more than four  thousand  five  hundred
  gallons  of  diesel  motor  fuel  in a thirty-day period for such use or
  consumption  in  accordance  with  a  prior  clearance  given   by   the
  commissioner.
    * NB Effective until September 1, 2011

    * (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 diesel motor fuel which is not enhanced diesel motor
  fuel but only if all of such fuel is consumed other than on the highways
  of this state, provided, however, this exemption shall in no event apply
  to a sale of diesel motor fuel which involves a delivery  at  a  filling
  station  or  into  a  repository  which is equipped with a hose or other
  apparatus by which such fuel can be dispensed into the fuel  tank  of  a
  motor vehicle. The exemption provided in subdivision (c) of this section
  shall apply to sales and uses of no more than four thousand five hundred
  gallons  of  diesel  motor  fuel  in  a  thirty-day  period  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 highways
  of this state (except for the use of  the  highways  to  reach  adjacent
  farmlands  or  adjacent  lands  used  in  a  commercial  horse  boarding
  operation,  or  both),  provided,  however,  such  exemption  shall   be
  applicable  to  the  sale or use of more than four thousand five hundred
  gallons of diesel motor fuel in a thirty-day  period  for  such  use  or
  consumption   in   accordance  with  a  prior  clearance  given  by  the
  commissioner.
    * NB Effective September 1, 2011
    (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)  Receipts  from  the  retail  sale  of residential solar energy
  systems equipment and of the service of installing such systems shall be
  exempt  from  tax  under  this  article.  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.
    * 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 thirteen 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 fifteen, 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 thirteen 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 thirteen, 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  fifteen 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, 2014
    (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, 2016
    * 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.