New York Tax Law Section 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.

Last modified: February 3, 2019