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SECTION 1116
Exempt organizations
Tax (TAX) CHAPTER 60, ARTICLE 28, PART 3
§ 1116. Exempt organizations. (a) Except as otherwise provided in this
section, any sale or amusement charge by or to any of the following or
any use or occupancy by any of the following shall not be subject to the
sales and compensating use taxes imposed under this article:

(1) 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, or where it is
a vendor of services or property of a kind not ordinarily sold by
private persons;

(2) 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, or where it sells services or property of a
kind not ordinarily sold by private persons;

(3) The United Nations or any international organization of which the
United States of America is a member where it is the purchaser, user or
consumer, or where it sells services or property of a kind not
ordinarily sold by private persons;

(4) Any corporation, association, trust, or community chest, fund,
foundation, or limited liability company, organized and operated
exclusively for religious, charitable, scientific, testing for public
safety, literary or educational purposes, or to foster national or
international amateur sports competition (but only if no part of its
activities involve the provision of athletic facilities or equipment),
or for the prevention of cruelty to children or animals, no part of the
net earnings of which inures to the benefit of any private shareholder
or individual, no substantial part of the activities of which is
carrying on propaganda, or otherwise attempting to influence
legislation, (except as otherwise provided in subsection (h) of section
five hundred one of the United States internal revenue code of nineteen
hundred fifty-four, as amended), and which does not participate in, or
intervene in (including the publishing or distributing of statements),
any political campaign on behalf of or in opposition to any candidate
for public office. The provisions of this paragraph regarding political
campaign activity shall be interpreted in the same manner as section
501(c)(3) of the United States internal revenue code has been
interpreted as of the effective date of the chapter of the laws of two
thousand nineteen that amended this paragraph;

(5) A post or organization of past or present members of the armed
forces of the United States, or an auxiliary unit or society of, or a
trust or foundation for, any such post or organization:

(A) organized in this state,

(B) at least seventy-five percent of the members of which are past or
present members of the armed forces of the United States as defined in
section thirteen-a of the general construction law and substantially all
of the other members of which are individuals who are cadets or are
spouses, widows, widowers, ancestors, or lineal descendants of past or
present members of the armed forces of the United States or of cadets,
and

(C) no part of the net earnings of which inures to the benefit of any
private shareholder or individual.

(6) The following Indian nations or tribes residing in New York state:
Cayuga, Oneida, Onondaga, Poospatuck, Saint Regis Mohawk, Seneca,
Shinnecock, Tonawanda and Tuscarora, where it is the purchaser, user or
consumer.

(7) A not-for-profit corporation operating as a health maintenance
organization subject to the provisions of article forty-four of the
public health law.

(8) Cooperative and foreign corporations doing business in this state
pursuant to the rural electric cooperative law.

(9) A credit union, as defined in subdivision nine of section two of
the banking law, where it is the purchaser, user, or consumer, or where
it is a vendor of services or property of a kind not ordinarily sold by
private persons.

(b) Nothing in this section shall exempt:

(1) (i) retail sales of tangible personal property by any shop or
store operated by an organization described in paragraph (4), (5) or (6)
of subdivision (a) of this section; (ii) sales, other than for resale,
of services described in subdivision (b) or paragraph five of
subdivision (c) of section eleven hundred five of this article by that
organization, whether or not at a shop or store; (iii) retail sales of
tangible personal property and sales, other than for resale, of those
services by that organization, made with a degree of regularity,
frequency, and continuity by remote means, such as by telephone, the
internet, mail order or otherwise; or (iv) retail sales of tangible
personal property by lease or rental by that organization as lessor,
whether or not at a shop or store;

(2) sales of food or drink in or by a restaurant, tavern or other
establishment operated by an organization described in paragraph (1),
paragraph (4), paragraph (5) or paragraph (6) of subdivision (a) of this
section, other than sales exempt under paragraph (ii) of subdivision (d)
of section eleven hundred five, from the taxes imposed hereunder, unless
the purchaser is an organization exempt under this section;

(3) sales of the service of providing parking, garaging or storing for
motor vehicles by an organization described in paragraph (4) or
paragraph (5) of subdivision (a) of this section operating a garage
(other than a garage which is part of premises occupied solely as a
private one or two family dwelling), parking lot or other place of
business engaged in providing parking, garaging or storing for motor
vehicles; or

(4) sales of tangible personal property or services by cooperative and
foreign corporations doing business in this state pursuant to the rural
electric cooperative law, unless the purchaser is an organization exempt
under this section.

(5) purchases of motor fuel or diesel motor fuel from the tax required
to be prepaid pursuant to section eleven hundred two of this article and
retail sales of motor fuel or diesel motor fuel subject to the tax
imposed by sections eleven hundred five and eleven hundred ten of this
article, except that purchases of such fuel by an organization described
in paragraph one or two of subdivision (a) of this section for its own
use or consumption, purchases of motor fuel by a hospital included in
the organizations described in paragraph four of such subdivision for
its own use and consumption, purchases of motor fuel and diesel motor
fuel by a fire company or fire department, as defined in section three
of the volunteer firefighters' benefit law or a voluntary ambulance
service, as defined in section three thousand one of the public health
law, for such department, company or service's own use and consumption
for use in firefighting vehicles, apparatus or equipment, or emergency
rescue or first aid response vehicles, apparatus or equipment, owned and
operated by such department, company or service if such company,
department or service qualifies as an exempt organization pursuant to
the provisions of paragraph four of subdivision (a) of this section and
purchases of diesel motor fuel by an organization described in paragraph
four of such subdivision for its own heating use and consumption shall
be exempt from such tax required to be prepaid and from retail sales and
use taxes on such fuel.

(6) purchases of cigarettes from the tax required to be prepaid
pursuant to section eleven hundred three of this article, except that no
prepayment of tax shall be required on sales of cigarettes sold under
such circumstances that this state is without power to impose such tax
or sold to the United States or sold to or by a voluntary unincorporated
organization of the armed forces of the United States operating a place
for sale of goods pursuant to regulations promulgated by the appropriate
executive agency of the United States, to the extent provided in such
regulations and written policy statements of such agency applicable to
such sales.

(7) rent received by a hotel operated by a college or university,
where such hotel offers one hundred or more rooms for occupancy, and
where the individual paying said rent is not doing business on behalf of
any organization exempted pursuant to subdivision (a) of this section.

(c) (1) Where any organization described in paragraph four of
subdivision (a) of this section carries on its activities in furtherance
of the purposes for which it was organized, in premises in which, as
part of said activities, it operates a hotel, occupancy of rooms in the
premises and rents therefrom received by such corporation or association
shall not be subject to tax hereunder.

(2) Nothing in this subdivision shall exempt any hotel operated by a
college or university and which offers one hundred or more rooms for
occupancy from collecting taxes imposed pursuant to section eleven
hundred five of this article from individuals who are not doing business
on behalf of an organization exempted pursuant to subdivision (a) of
this section.

(d) (1) Except as provided in paragraph (2) of this subdivision, any
admissions all of the proceeds of which inure exclusively to the benefit
of the following organizations shall not be subject to any of the taxes
imposed under subdivision (f) of section eleven hundred five:

(A) an organization described in paragraph (4), (5) or (6) of
subdivision (a) of this section;

(B) a society or organization conducted for the sole purpose of
maintaining symphony orchestras or operas and receiving substantial
support from voluntary contributions; or

(C) national guard organizations; or

(D) a police or fire department of a political subdivision of the
state, or a voluntary fire or ambulance company, or exclusively to a
retirement, pension or disability fund for the sole benefit of members
of a police or fire department or to a fund for the heirs of such
members.

(2) The exemption provided under paragraph (1) of this subdivision
shall not apply in the case of admissions to:

(A) Any athletic game or exhibition unless the proceeds shall inure
exclusively to the benefit of elementary or secondary schools or unless
in the case of an athletic game between two elementary or secondary
schools, the entire gross proceeds from such game shall inure to the
benefit of one or more organizations described in paragraph (4) of
subdivision (a) of this section;

(B) Carnivals or rodeos in which any professional performer or
operator participates for compensation, unless the entire net profit
from such carnival or rodeo shall inure exclusively to the benefit of an
organization described in paragraph four of subdivision (a) of this
section, and such organization shall have as its charitable or
educational purpose the operation of a school and of such a carnival or
rodeo; or

(3) Admission charges for admission to the following places or events
shall not be subject to any of the taxes imposed under subdivision (f)
of section eleven hundred five:

(A) Any admission to agricultural fairs if no part of the net earnings
thereof inures to the benefit of any stockholders or members of the
association conducting the same; provided the proceeds therefrom are
used exclusively for the improvement, maintenance and operation of such
agricultural fairs.

(B) Any admission to a home or garden which is temporarily open to the
general public as a part of a program conducted by a society or
organization to permit the inspection of historical homes and gardens;
provided no part of the net earnings thereof inures to the benefit of
any private stockholder or individual.

(C) Any admissions to historic sites, houses and shrines, and museums
conducted in connection therewith, maintained and operated by a society
or organization devoted to the preservation and maintenance of such
historic sites, houses, shrines and museums; provided no part of the net
earnings thereof inures to the benefit of any private stockholder or
individual.

(e) Receipts from the service of trash removal shall be exempt from
the tax on such service imposed by this article, where such service is
rendered by a municipal corporation of the state, other than a city of
one million or more, including such service rendered on its behalf,
under an agreement with such corporation.

(f)(1) For purposes of paragraph four of subdivision (a) of this
section, in the case of a qualified amateur sports organization (A) the
requirement of such paragraph that no part of its activities involve the
provision of athletic facilities or equipment shall not apply, and (B)
such organization shall not fail to meet the requirement of such
paragraph merely because its membership is local or regional in nature.

(2) For purposes of this subdivision, the term "qualified amateur
sports organization" means any organization organized and operated
exclusively to foster national or international amateur sports
competition if such organization is also organized and operated
primarily to conduct national or international competition in sports or
to support and develop amateur athletes for national or international
competition in sports.

(g) For purposes of paragraph five of subdivision (a) of this section,
duly authorized representatives of any such post or organization, while
acting on behalf of such post or organization, shall not be subject to
the tax imposed under subdivision (e) of section eleven hundred five or
the unit fee imposed by section eleven hundred four of this article,
provided that such representatives provide an exempt organization
certificate from such post or organization certifying that such
representative is acting on its behalf.