Section 1230. Exempt organizations

Any tax imposed under the authority of
  sections twelve hundred one through twelve hundred  five  shall  not  be
  imposed on any transaction by or with the following:
    (a)  The state of New York, or any of its agencies, instrumentalities,
  public corporations (including a public corporation created pursuant  to
  agreement  or  compact  with  another  state  or  Canada)  or  political
  subdivisions where it is the purchaser, user or consumer;
    (b) The United  States  of  America,  and  any  of  its  agencies  and
  instrumentalities  insofar as it is immune from taxation where it is the
  purchaser, user or consumer;
    (c) The United Nations or other international organizations  of  which
  the United States of America is a member; and
    (d)  Any  corporation,  or  association, or trust, or community chest,
  fund or foundation, organized and operated  exclusively  for  religious,
  charitable, or educational purposes, or for the prevention of cruelty to
  children  or animals, and no part of the net earnings of which inures to
  the benefit of any private shareholder or individual, and no substantial
  part of the activities of which is carrying on propaganda, or  otherwise
  attempting  to  influence  legislation;  provided,  however,  that  this
  subdivision shall not apply to an organization operated for the  primary
  purpose  of  carrying  on a trade or business for profit, whether or not
  all of its profits are payable to one or more organizations described in
  this  subdivision.  Nothing  in  this  subdivision  shall  prohibit  any
  organization   exempt  from  taxation  pursuant  to  this  section  from
  collecting the taxes imposed  under  the  authority  of  section  twelve
  hundred  two-f  from individuals who are doing business with such exempt
  organization and who are not  exempt  from  taxation  pursuant  to  this
  section.