A. 8223 2
(E) THE SERVICE HAS CONTINUITY AS TO ITS TITLE AND THE GENERAL NATURE
OF ITS CONTENT OVER TIME;
(F) THE SERVICE IS NOT, IN WHOLE OR IN SUBSTANTIAL PART, A LISTING,
CATALOG, DATABASE, OR COMPILATION;
(G) THE ONLY SEARCH FUNCTION THE SERVICE OFFERS WITHOUT A SEPARATELY-
STATED, REASONABLE CHARGE IS A SEARCH OF THE SERVICE'S OR OF ANY OF ITS
AFFILIATES' PRESENT OR PAST NEWS CONTENT. PROVIDED, HOWEVER, A SERVICE
THAT SATISFIES ALL THE CLAUSES OF THIS SUBPARAGRAPH EXCEPT THIS CLAUSE
MAY STILL QUALIFY AS AN ELECTRONIC NEWS SERVICE FOR PURPOSES OF THIS
PARAGRAPH IF THE PROVIDER OF THE SERVICE CAN SHOW THAT THE NON-NEWS
CONTENT AVAILABLE THROUGH THE SEARCH FUNCTION IS MERELY AN INCIDENTAL
PART OF THE SERVICE, INCLUDING, FOR EXAMPLE, BY SHOWING THAT THE COST TO
THE PERSON PROVIDING THE SERVICE OF ANY NON-NEWS CONTENT AVAILABLE
THROUGH THE SEARCH FUNCTION IS LESS THAN THE COST TO THAT PERSON OF
PROVIDING THE NEWS CONTENT AVAILABLE THROUGH THE SERVICE. PROVIDED,
FURTHER, THAT A PURCHASER'S ACCESS TO THE SERVICE'S SEARCH FUNCTION FOR
WHICH THERE IS A SEPARATELY-STATED, REASONABLE CHARGE TO THE PURCHASER
SHALL BE TREATED SEPARATELY AND IS NOT RELEVANT AS TO WHETHER THIS
CLAUSE IS SATISFIED.
(II) THE FOLLOWING DEFINITIONS APPLY TO SUBPARAGRAPH (I) OF THIS PARA-
GRAPH AND SUBDIVISION (GG) OF SECTION ELEVEN HUNDRED FIFTEEN OF THIS
ARTICLE:
(A) "NEWS CONTENT" MEANS ARTICLES, PHOTOGRAPHS, AND VIDEO AND AUDIO
MATERIAL CONCERNING GENERAL NEWS OR SPECIALIZED NEWS AND DOES NOT
INCLUDE LISTINGS, ADVERTISEMENTS, CATALOGS, COMPILATIONS, DATABASES, OR
THE LIKE;
(B) "NON-NEWS CONTENT" MEANS ANY INFORMATION OTHER THAN NEWS CONTENT;
(C) "ARTICLE" MEANS A PROSE COMPOSITION, INCLUDING COMMENTARIES,
REVIEWS, EDITORIALS, OP-EDS, LETTERS TO THE EDITOR, AND READER COMMENTS
ON ARTICLES. THE TERM DOES NOT INCLUDE LISTINGS, ADVERTISEMENTS, CATA-
LOGS, COMPILATIONS, DATABASES, OR THE LIKE;
(D) "GENERAL NEWS" MEANS MATTERS OF GENERAL INTEREST AND REPORTS OF
CURRENT EVENTS;
(E) "SPECIALIZED NEWS" MEANS MATTERS OF A SPECIALIZED INTEREST, SUCH
AS LEGAL, MERCANTILE, FINANCIAL, THEATRICAL, ENTERTAINMENT NEWS, POLI-
TICAL, RELIGIOUS, OR SPORTING MATTERS;
(F) "CAP AMOUNT" MEANS THREE HUNDRED PERCENT OF THE ANNUALIZED AVERAGE
DAILY NEWSSTAND PRICE OF THE THREE NEWSPAPERS WITH THE LARGEST TOTAL
PAID NATIONAL DAILY CIRCULATION. THE COMMISSIONER SHALL DETERMINE THE
CAP AMOUNT ANNUALLY AND SHALL CAUSE IT TO BE PUBLISHED ON THE DEPART-
MENT'S WEBSITE AND GIVE OTHER APPROPRIATE GENERAL NOTICE THEREOF. THE
COMMISSIONER SHALL DETERMINE AND PUBLISH THE CAP AMOUNT ANNUALLY BY THE
FIRST OF APRIL BASED ON PRICES CHARGED DURING THE FIRST WEEK OF JANUARY
OF THAT YEAR, WHICH CAP AMOUNT SHALL APPLY FOR THE SUCCEEDING
TWELVE-MONTH PERIOD COMMENCING THE FIRST OF JUNE AND ENDING THE THIRTY-
FIRST OF MAY. THE CALCULATION AND PUBLICATION OF THE CAP AMOUNT UNDER
THIS CLAUSE SHALL NOT BE INCLUDED WITHIN PARAGRAPH (A) OF SUBDIVISION
TWO OF SECTION ONE HUNDRED TWO OF THE STATE ADMINISTRATIVE PROCEDURE ACT
RELATING TO THE DEFINITION OF A RULE;
(G) "AFFILIATE" MEANS, WITH RESPECT TO ANY PERSON, ANY OTHER PERSON
THAT, DIRECTLY OR INDIRECTLY THROUGH ONE OR MORE INTERMEDIARIES,
CONTROLS, OR IS CONTROLLED BY, OR IS UNDER COMMON CONTROL WITH, SUCH
PERSON, AND THE TERM "CONTROL" (INCLUDING THE TERMS "CONTROLLED BY" AND
"UNDER COMMON CONTROL WITH") MEANS THE POSSESSION, DIRECTLY OR INDIRECT-
LY, OF THE POWER TO DIRECT OR CAUSE THE DIRECTION OF THE MANAGEMENT AND
A. 8223 3
POLICIES OF SUCH PERSON, WHETHER THROUGH OWNERSHIP OF VOTING SECURITIES,
BY CONTRACT OR OTHERWISE.
(38) ELECTRONIC PERIODICAL. (I) A PUBLICATION DELIVERED, FURNISHED OR
PROVIDED TO OR ACCESSED BY THE PURCHASER ELECTRONICALLY OR DIGITALLY
THAT MEETS ALL OF THE FOLLOWING CONDITIONS:
(A) THE PUBLICATION'S PREDOMINANT PURPOSE IS THE PRESENTATION OF NEWS
CONTENT, WHICH IT PROMINENTLY FEATURES;
(B) THE PUBLICATION IS PUBLISHED AT STATED INTERVALS, AT LEAST AS
FREQUENTLY AS FOUR TIMES A YEAR BUT NO MORE FREQUENTLY THAN WEEKLY, AND
IS NOT UPDATED BETWEEN ISSUES. HOWEVER, THE INCIDENTAL PROVISION OF
ADDITIONAL NEWS CONTENT BETWEEN ISSUES WILL NOT PREVENT THE REQUIREMENT
IN THIS CLAUSE FROM BEING SATISFIED. IN DETERMINING WHETHER THE NEWS
CONTENT ADDED BETWEEN ISSUES IS INCIDENTAL, AMONG THE FACTORS THE
COMMISSIONER IS TO CONSIDER IS THE AMOUNT OF THE NEWS CONTENT ADDED
BETWEEN ISSUES RELATIVE TO THE NEWS CONTENT IN PRECEDING ISSUES AND THE
FREQUENCY OF THE PROVISION OF ADDITIONAL NEWS CONTENT BETWEEN ISSUES.
PROVIDED THAT THE DISPLAY OF READER COMMENTS OR LETTERS TO THE EDITOR
BETWEEN ISSUES DOES NOT AFFECT WHETHER THIS CLAUSE IS SATISFIED.
(C) THE PUBLICATION'S NEWS CONTENT IS PURCHASED FROM CONTRACTED WIRE
SERVICES OR WRITTEN OR PRODUCED BY MULTIPLE EMPLOYEES OR ENGAGED INDE-
PENDENT CONTRACTORS OF THE PERSON PROVIDING THE PUBLICATION, INCLUDING,
BUT NOT LIMITED TO, EMPLOYEES OR ENGAGED INDEPENDENT CONTRACTORS OF ANY
AFFILIATE OF SUCH PERSON;
(D) THE PUBLICATION IS AVAILABLE TO THE PUBLIC;
(E) THE PUBLICATION HOLDS ITSELF OUT AS A "MAGAZINE," "PERIODICAL" OR
WORDS OF SIMILAR IMPORT AND DOES NOT HOLD ITSELF OUT AS SOMETHING OTHER
THAN A "MAGAZINE," "PERIODICAL," OR WORDS OF SIMILAR IMPORT;
(F) THE PUBLICATION HAS CONTINUITY AS TO ITS TITLE AND THE GENERAL
NATURE OF ITS CONTENT OVER TIME;
(G) THE PUBLICATION IS NOT, IN WHOLE OR IN SUBSTANTIAL PART, A LIST-
ING, CATALOG, DATABASE, OR COMPILATION; AND
(H) THE ONLY SEARCH FUNCTION THE PUBLICATION OFFERS WITHOUT A SEPA-
RATELY-STATED, REASONABLE CHARGE IS A SEARCH OF THE PUBLICATION'S OR OF
AN AFFILIATE'S PRESENT OR PAST NEWS CONTENT. HOWEVER: (I) THE PUBLICA-
TION'S PROVISION OF ACCESS, AT NO ADDITIONAL CHARGE, TO A SEARCH ENGINE
THAT, APART FROM THE SERVICE, IS OTHERWISE AVAILABLE TO THE PUBLIC FOR
FREE IS NOT RELEVANT AS TO WHETHER THIS CLAUSE IS SATISFIED; AND (II)
THE PUBLICATION'S PROVISION OF ACCESS TO A SEARCH FUNCTION FOR WHICH
THERE IS A SEPARATELY-STATED, REASONABLE CHARGE TO THE PURCHASER SHALL
BE TREATED SEPARATELY AND IS NOT RELEVANT AS TO WHETHER THIS CLAUSE IS
SATISFIED.
(II) FOR PURPOSES OF SUBPARAGRAPH (I) OF THIS PARAGRAPH AND THE
EXEMPTION PROVIDED FOR ELECTRONIC PERIODICALS IN SUBDIVISION (GG) OF
SECTION ELEVEN HUNDRED FIFTEEN OF THIS ARTICLE, "ARTICLES" HAS THE SAME
MEANING AS IN SUBPARAGRAPH (II) OF PARAGRAPH THIRTY-SEVEN OF THIS SUBDI-
VISION AND "NEWS CONTENT" MEANS ARTICLES, PHOTOGRAPHS, AND VIDEO AND
AUDIO MATERIAL DEVOTED TO LITERATURE, THE SCIENCES, THE ARTS, NEWS, AN
INDUSTRY, PROFESSION, SPORT OR OTHER FIELD OF ENDEAVOR, AND DOES NOT
INCLUDE LISTINGS, ADVERTISEMENTS, CATALOGS, COMPILATIONS, DATABASES, OR
THE LIKE.
S 2. Paragraph 1 of subdivision (c) of section 1105 of the tax law, as
amended by chapter 373 of the laws of 1995, is amended to read as
follows:
(1) The furnishing of information by printed, mimeographed or multi-
graphed matter or by duplicating written or printed matter in any other
manner, including the services of collecting, compiling or analyzing
A. 8223 4
information of any kind or nature and furnishing reports thereof to
other persons, but excluding the furnishing of information which is
personal or individual in nature and which is not or may not be substan-
tially incorporated in reports furnished to other persons, and excluding
the services of advertising or other agents, or other persons acting in
a representative capacity, and information services used by newspapers,
ELECTRONIC NEWS SERVICES, radio broadcasters and television broadcasters
in the collection and dissemination of news, and excluding meteorologi-
cal services.
S 3. Paragraph (i) of subdivision (b) of section 1115 of the tax law,
as amended by chapter 575 of the laws of 1965, is amended to read as
follows:
(i) Telephony and telegraphy and telephone and telegraph service used
by newspapers, ELECTRONIC NEWS SERVICES, radio broadcasters and tele-
vision broadcasters in the collection or dissemination of news shall be
exempt from the tax imposed under subdivision (b) of section eleven
hundred five OF THIS ARTICLE if the charge for such services is a toll
charge or a charge for mileage services, including the associated
station terminal equipment.
S 4. Section 1115 of the tax law is amended by adding a new subdivi-
sion (gg) to read as follows:
(GG)(1) RECEIPTS FROM THE SALE OF AN ELECTRONIC NEWS SERVICE AND
CONSIDERATION GIVEN OR CONTRACTED TO BE GIVEN FOR, OR FOR THE USE OF, AN
ELECTRONIC NEWS SERVICE SHALL BE EXEMPT FROM THE TAXES IMPOSED BY PARA-
GRAPH ONE OR NINE OF SUBDIVISION (C) OF SECTION ELEVEN HUNDRED FIVE OF
THIS ARTICLE AND CLAUSE (C) OF SUBDIVISION (A) OF SECTION ELEVEN HUNDRED
TEN OF THIS ARTICLE IF THE RECEIPTS FROM THE SALE OF, OR THE CONSIDER-
ATION GIVEN FOR, OR FOR THE USE OF, THE ELECTRONIC NEWS SERVICE DOES NOT
EXCEED THE CAP AMOUNT AS DEFINED IN SUBPARAGRAPH (II) OF PARAGRAPH THIR-
TY-SEVEN OF SUBDIVISION (B) OF SECTION ELEVEN HUNDRED ONE OF THIS ARTI-
CLE. IF THE SUBSCRIPTION PERIOD OF THE ELECTRONIC NEWS SERVICE IS OTHER
THAN A YEAR, THE CAP AMOUNT SHALL BE ADJUSTED PROPORTIONATELY IN DETER-
MINING WHETHER THE SUBSCRIPTION PRICE EXCEEDS THE CAP AMOUNT. IF THE
CONTRACT FOR THE SALE OF THE ELECTRONIC NEWS SERVICE GRANTS MORE THAN
ONE PERSON THE RIGHT TO VIEW THE ELECTRONIC NEWS SERVICE, THE RECEIPTS
FROM THE SALE OF, OR THE CONSIDERATION GIVEN FOR, OR FOR THE USE OF, THE
SERVICE WILL BE DEEMED NOT TO EXCEED THE CAP AMOUNT ONLY IF THE LISTED
SELLING PRICE FOR AN INDIVIDUAL SUBSCRIPTION ON THE DAY THE CONTRACT
COMMENCES DOES NOT EXCEED THE CAP AMOUNT.
(2) RECEIPTS FROM THE SALE OF AN ELECTRONIC PERIODICAL AND CONSIDER-
ATION GIVEN, OR CONTRACTED TO BE GIVEN FOR, OR FOR THE USE OF, AN ELEC-
TRONIC PERIODICAL SHALL BE EXEMPT FROM THE TAXES IMPOSED BY PARAGRAPH
ONE OR NINE OF SUBDIVISION (C) OF SECTION ELEVEN HUNDRED FIVE AND CLAUSE
(C) OF SUBDIVISION (A) OF SECTION ELEVEN HUNDRED TEN OF THIS ARTICLE.
(3) IF AN ELECTRONIC PERIODICAL IS SOLD TOGETHER WITH ANY OTHER COMPO-
NENTS THAT ARE TAXABLE UNDER THIS ARTICLE (OTHER THAN AN ELECTRONIC NEWS
SERVICE) FOR A SINGLE PRICE, THE EXEMPTION IN PARAGRAPH TWO OF THIS
SUBDIVISION SHALL NOT APPLY TO THE RECEIPTS FROM THE SALE OF, OR CONSID-
ERATION GIVEN, OR CONTRACTED TO BE GIVEN FOR, OR FOR THE USE OF, THE
ELECTRONIC PERIODICAL AND SUCH OTHER COMPONENTS UNLESS THE VENDOR SELLS
SUCH ELECTRONIC PERIODICAL AND SUCH OTHER COMPONENTS SEPARATELY IN THE
REGULAR COURSE OF BUSINESS. IF THE REQUIREMENT IN THE PRECEDING SENTENCE
IS SATISFIED, THEN THE EXEMPTION WILL APPLY TO AN AMOUNT EQUAL TO THE
BUNDLED PRICE MULTIPLIED BY A FRACTION, THE NUMERATOR OF WHICH IS THE
PRICE OF THE ELECTRONIC PERIODICAL WHEN SOLD SEPARATELY AND THE DENOMI-
NATOR OF WHICH IS THE SUM OF THE PRICE OF THE ELECTRONIC PERIODICAL WHEN
A. 8223 5
SOLD SEPARATELY AND THE PRICE OF THE OTHER COMPONENTS OF THE TRANSACTION
WHEN SOLD SEPARATELY.
(4) IF AN ELECTRONIC NEWS SERVICE IS SOLD TOGETHER WITH OTHER COMPO-
NENTS FOR A SINGLE PRICE, THE EXEMPTION IN PARAGRAPH ONE OF THIS SUBDI-
VISION SHALL NOT APPLY TO THE RECEIPTS FROM THE SALE OF, OR CONSIDER-
ATION GIVEN, OR CONTRACTED TO BE GIVEN, FOR, OR FOR THE USE OF, THE
ELECTRONIC NEWS SERVICE AND THE OTHER COMPONENTS IN THE TRANSACTION
UNLESS ONE OF THE FOLLOWING EXCEPTIONS APPLIES AND ONLY TO THE EXTENT
INDICATED:
(I) THE PROVIDER OF THE ELECTRONIC NEWS SERVICE DOES NOT SEPARATELY
SELL THE ELECTRONIC NEWS SERVICE IN THE REGULAR COURSE OF BUSINESS, THE
OTHER COMPONENTS ARE NOT TAXABLE UNDER THIS ARTICLE, AND THE BUNDLED
PRICE IS LESS THAN THE CAP AMOUNT, IN WHICH CASE THE EXEMPTION APPLIES
TO THE FULL BUNDLED PRICE; OR
(II) THE PROVIDER OF THE ELECTRONIC NEWS SERVICE SELLS THE ELECTRONIC
NEWS SERVICE AND EACH OF THE OTHER COMPONENTS OF THE TRANSACTION SEPA-
RATELY IN THE REGULAR COURSE OF BUSINESS, WHETHER OR NOT THE COMPONENTS
ARE TAXABLE UNDER THIS ARTICLE, AND THE SEPARATE PRICE OF THE ELECTRONIC
NEWS SERVICE DOES NOT EXCEED THE CAP AMOUNT. IF THE CONDITIONS IN THIS
SUBPARAGRAPH ARE MET, THE EXEMPTION PROVIDED BY PARAGRAPH ONE OF THIS
SUBDIVISION WILL APPLY ONLY TO AN AMOUNT EQUAL TO THE BUNDLED PRICE
MULTIPLIED BY A FRACTION, THE NUMERATOR OF WHICH IS THE PRICE OF THE
ELECTRONIC NEWS SERVICE WHEN SOLD SEPARATELY IN THE REGULAR COURSE OF
BUSINESS, AND THE DENOMINATOR OF WHICH IS THE SUM OF THE PRICE OF THE
ELECTRONIC NEWS SERVICE WHEN SOLD SEPARATELY IN THE REGULAR COURSE OF
BUSINESS AND THE PRICES OF THE OTHER COMPONENTS WHEN SOLD SEPARATELY IN
THE REGULAR COURSE OF BUSINESS; PROVIDED, HOWEVER, THAT IN NO CASE SHALL
THE EXEMPT AMOUNT BE GREATER THAN THE AMOUNT OF THE CHARGE FOR THE ELEC-
TRONIC NEWS SERVICE WHEN SOLD SEPARATELY IN THE REGULAR COURSE OF BUSI-
NESS.
(5) FOR THE PURPOSES OF THIS SUBDIVISION, "BUNDLED PRICE" MEANS THE
PRICE AT WHICH AN ELECTRONIC NEWS SERVICE OR AN ELECTRONIC PERIODICAL IS
SOLD TOGETHER WITH ANY OTHER COMPONENTS FOR ONE PRICE; AND "COMPONENT"
MEANS ANY PROPERTY, SERVICE, OR OTHER ITEM OF WHATEVER NATURE THAT IS
SOLD TOGETHER WITH AN ELECTRONIC NEWS SERVICE OR ELECTRONIC PERIODICAL
FOR ONE PRICE.
(6) NOTHING IN THIS SUBDIVISION SHALL EXEMPT, OR BE CONSTRUED TO
EXEMPT, ANY SEPARATE CHARGE BY THE VENDOR OF AN ELECTRONIC NEWS SERVICE
OR ELECTRONIC PERIODICAL FOR OTHER INFORMATION SERVICES, OR ANY OTHER
PROPERTY OR SERVICE SUBJECT TO TAX UNDER THIS ARTICLE, THAT DOES NOT
CONSTITUTE AN ELECTRONIC NEWS SERVICE OR ELECTRONIC PERIODICAL.
S 5. Severability clause. If any clause, sentence, paragraph, subdivi-
sion, section or part of this act shall be adjudged by any court of
competent jurisdiction to be invalid, this act shall be null, void, and
without effect in its entirety and thus prior law shall be reinstated.
It is hereby declared to be the intent of the legislature that this act
would not have been enacted if such invalid provisions had not been
included herein.
S 6. This act shall take effect on the first day of a sales tax quar-
terly period, as described in subdivision (b) of section 1136 of the tax
law, next commencing at least 90 days after this act shall have become a
law and shall apply in accordance with the applicable transitional
provisions in sections 1106 and 1217 of the tax law; provided, however,
that the commissioner of taxation and finance shall compute the cap
amount under subparagraph (ii) of paragraph 37 of subdivision (b) of
section 1101 of the tax law, as added by section one of this act, based
A. 8223 6
on prices in effect during the first seven days of the first calendar
month next commencing after this act shall have become a law, and the
commissioner shall publish that cap amount at least one month prior to
the date this act takes effect and such cap amount shall apply to sales
made, services rendered, or uses occurring from the dater this act takes
effect through the thirty-first of May next succeeding the date on which
it shall have become a law; and further provided that the commissioner
of taxation and finance shall notify the legislative bill drafting
commission upon the occurrence of the enactment of the legislation
provided for in sections one, two, three and four of this act in order
that the commission may maintain an accurate and timely effective data
base of the official text of the laws of the state of New York in furth-
erance of effectuating the provisions of section 44 of the legislative
law and section 70-b of the public officers law.