N.Y.
Tax Law Section 1118
Exemptions from use tax
(1)
In respect to the use of property used by the purchaser in this state prior to August first, nineteen hundred sixty-five.(2)
(a) In respect to the use of property or services purchased by the user while a nonresident of this state, except in the case of tangible personal property or services which the user, in the performance of a contract, incorporates into real property located in the state. A person while engaged in any manner in carrying on in this state any employment, trade, business or profession, shall not be deemed a nonresident with respect to the use in this state of property or services in such employment, trade, business or profession. This exemption does not apply to the use of qualified property where the qualified property is purchased primarily to carry individuals, whether or not for hire, who are agents, employees, officers, shareholders, members, managers, partners, or directors of (A) the purchaser, where any of those individuals was a resident of this state when the qualified property was purchased or (B) any affiliated person that was a resident when the qualified property was purchased. For purposes of this subdivision:(i)
persons are affiliated persons with respect to each other where one of the persons has an ownership interest of more than five percent, whether direct or indirect, in the other, or where an ownership interest of more than five percent, whether direct or indirect, is held in each of the persons by another person or by a group of other persons that are affiliated persons with respect to each other;(ii)
“qualified property” means vessels and motor vehicles; and(iii)
“carry” means to take any person from one point to another, whether for the business purposes or pleasure of that person. For an exception to the exclusions from the definition of “retail sale” applicable to vessels, see subdivision (q) of § 1111 (Special rules for computing receipts and consideration)section eleven hundred eleven of this article. (b) Notwithstanding any provision of this article to the contrary, the exclusion in paragraph (a) of this subdivision shall not apply to the use within the state of property or a service purchased outside this state by a nonresident that is not an individual, unless such nonresident has been doing business outside the state for at least six months prior to the date such nonresident brought such property or service into this state.(3)
In respect to the use of property or services upon the sale of which the purchaser would be expressly exempt from the taxes imposed under subdivision (a), (b) or (c) of section eleven hundred five. In respect to the use of property to the extent that it is exempt from the sales tax under subdivision (g) of § 1111 (Special rules for computing receipts and consideration)section eleven hundred eleven of this article.(4)
In respect to the use of property which is converted into or becomes a component part of a product produced for sale by the purchaser.(5)
In respect to the use of paper in the publication of newspapers and periodicals.(6)
In respect to the use of property used exclusively for the temporary construction, improvement, alteration or repair of any building, structure or exhibit, located entirely on land owned by a city having a population of one million or more and leased by it to a corporation organized for the sole purpose of holding a world’s fair and confining its operations solely to preparing for and conducting such fair.(7)
(a) In respect to the use of property or services to the extent that a retail sales or use tax was legally due and paid thereon, without any right to a refund or credit thereof, to any other state or jurisdiction within any other state but only when it is shown that such other state or jurisdiction allows a corresponding exemption with respect to the sale or use of tangible personal property or services upon which such a sales tax or compensating use tax was paid to this state. To the extent that the tax imposed by this article is at a higher rate than the rate of tax in the first taxing jurisdiction, this exemption shall be inapplicable and the tax imposed by § 1110 (Imposition of compensating use tax)section eleven hundred ten of this chapter shall apply to the extent of the difference in such rates, except as provided in paragraph (b) of this subdivision. (b) To the extent that the compensating use tax imposed by this article and a compensating use tax imposed pursuant to article twenty-nine are at a higher aggregate rate than the rate of tax imposed in the first taxing jurisdiction, the exemption provided in paragraph (a) of this subdivision shall be inapplicable and the taxes imposed by this article and pursuant to article twenty-nine shall apply to the extent of the difference between such aggregate rate and the rate paid in the first taxing jurisdiction. In such event, the amount payable shall be allocated between the tax imposed by this article and the tax imposed pursuant to article twenty-nine in proportion to the respective rates of such taxes.(8)
In respect to the use of spare parts (including engines), consumable technical supplies, maintenance and ground equipment used exclusively in the operation or handling or maintenance of aircraft, and aircraft stores, brought into this state from a foreign country by a foreign airline which holds a foreign air carrier permit, issued by the Civil Aeronautics Board pursuant to Section 402 of the Federal Aviation Act of 1958, as amended, to engage in foreign air transportation, provided that:(i)
such property is to be used on aircraft (or directly in the operation, handling or maintenance of aircraft) of the airline providing foreign air transportation services (or such aircraft of another foreign airline eligible under this subdivision); and(ii)
such property would not be subject to taxes imposed in the foreign country in which the particular foreign airline is based if brought into such country by a United States airline operating in that country.(9)
In respect to the use of a thoroughbred, standardbred or quarter horse purchased outside the state and brought into the state for the purpose of entering a racing event or events on which pari-mutuel wagering is authorized by law, and to prepare therefor. Provided, however, that the exemption contained in this subdivision shall not apply to any such horse which enters racing events in this state on more than five days in any one calendar year. Nothing contained herein shall alter the exemption provided to nonresidents, as specified in subdivision two of this section.(10)
In respect to the use of horses purchased outside the state and brought into the state for racing to the extent that the value of the horse exceeds one hundred thousand dollars. On or before December fifteenth, nineteen hundred eighty-five, and December fifteenth, nineteen hundred eighty-six, the board shall report to the director of the budget, the chairman of the senate finance committee and the chairman of the assembly ways and means committee concerning the benefits or costs associated with the provisions of this subdivision, an assessment of any economic impact and appropriate recommendations. The commissioner of taxation and finance shall provide to the board such reports as are necessary to effect the board’s mandate.(11)
In respect to the use of computer software that did not constitute tangible personal property prior to September first, nineteen hundred ninety-one, used by the purchaser, author or other creator, or copyright owner in this state prior to such date.(12)
In respect to the use of prepaid telephone calling service prior to the effective date of a chapter of the laws of nineteen hundred ninety-nine which added this subdivision. * (13) In respect to the use of the following items at a tasting held by a licensed producer of alcoholic beverages in accordance with the alcoholic beverage control law:(i)
the alcoholic beverage or beverages authorized by the alcoholic beverage control law to be furnished at no charge to a customer or prospective customer at such tasting for consumption at such tasting; and(ii)
bottles, corks, caps and labels used to package such alcoholic beverages. * NB There are 2 sb (13)’s * (13) In respect to the use within the state of a vessel, as defined in Vehicle & Traffic Law § 2250 (Jurisdiction of department)section twenty-two hundred fifty of the vehicle and traffic law, until the first of the following events occur: (a) the use of such vessel within this state by the purchaser thereof for a period in excess of ninety consecutive days; (b) the date upon which such vessel is first required to be registered pursuant to Vehicle & Traffic Law § 2251 (Registration)section twenty-two hundred fifty-one of the vehicle and traffic law; or (c) the date upon which such vessel is so registered. * NB There are 2 sb (13)’s
Source:
Section 1118 — Exemptions from use tax, https://www.nysenate.gov/legislation/laws/TAX/1118 (updated Apr. 14, 2017; accessed Oct. 26, 2024).
