N.Y. Tax Law § 12: Internet; advertising, vendor status, nexus

§ 12. Internet; advertising, vendor status, nexus. (a) For purposes

of subdivision (b) of this section, the term "person" shall mean a

corporation, joint stock company or association, insurance corporation,

or banking corporation, as such terms are defined in section one hundred

eighty-three, one hundred eighty-four, or one hundred eighty-six, or in

article nine-A or thirty-three of this chapter, imposing tax on such

entities.

(b) No person shall be subject to the taxes imposed under section one

hundred eighty-three, one hundred eighty-four or one hundred eighty-six,

or article nine-A or thirty-three of this chapter, solely by reason of

(1) having its advertising stored on a server or other computer

equipment located in this state (other than a server or other computer

equipment owned or leased by such person), or (2) having its advertising

disseminated or displayed on the Internet by an individual or entity

subject to tax under section one hundred eighty-three, one hundred

eighty-four or one hundred eighty-six, or article nine-A, twenty-two or

thirty-three of this chapter.

(c) A person, as such term is defined in subdivision (a) of section

eleven hundred one of this chapter, shall not be deemed to be a vendor,

for purposes of article twenty-eight of this chapter, solely by reason

of (1) having its advertising stored on a server or other computer

equipment located in this state (other than a server or other computer

equipment owned or leased by such person), or (2) having its advertising

disseminated or displayed on the Internet by an individual or entity

subject to tax under section one hundred eighty-three, one hundred

eighty-four or one hundred eighty-six, or article nine-A, twenty-two or

thirty-three of this chapter.

(d)(i) Except as provided in clause (B) of subparagraph (ii) of

paragraph eight of subdivision (b) of section eleven hundred one of this

chapter, a person selling telecommunication services or an Internet

access service shall not be deemed to be a vendor, for purposes of

article twenty-eight or twenty-nine of this chapter, of tangible

personal property or services sold by the purchaser of such

telecommunication services or Internet access service solely because

such purchaser uses such telecommunication services or Internet access

service as a means to sell such tangible personal property or services.

(ii) For purposes of this subdivision, the term "person" shall refer

to any person within the meaning prescribed in either paragraph (c) of

subdivision one of section one hundred eighty-six-e of this chapter or

subdivision (a) of section eleven hundred one of this chapter, the term

"telecommunication services" shall have the meaning prescribed in

paragraph (g) of subdivision one of section one hundred eighty-six-e of

this chapter, and the term "Internet access service" shall have the

meaning prescribed in subdivision (v) of section eleven hundred fifteen

of this chapter.