N.Y. TAX Law § 12

§ 12. Internet; advertising, vendor status, nexus. (a) For purposes\nof subdivision (b) of this section, the term "person" shall mean a\ncorporation, joint stock company or association, insurance corporation,\nor banking corporation, as such terms are defined in section one hundred\neighty-three, one hundred eighty-four, or one hundred eighty-six, or in\narticle nine-A or thirty-three of this chapter, imposing tax on such\nentities.\n (b) No person shall be subject to the taxes imposed under section one\nhundred eighty-three, one hundred eighty-four or one hundred eighty-six,\nor article nine-A or thirty-three of this chapter, solely by reason of\n(1) having its advertising stored on a server or other computer\nequipment located in this state (other than a server or other computer\nequipment owned or leased by such person), or (2) having its advertising\ndisseminated or displayed on the Internet by an individual or entity\nsubject to tax under section one hundred eighty-three, one hundred\neighty-four or one hundred eighty-six, or article nine-A, twenty-two or\nthirty-three of this chapter.\n (c) A person, as such term is defined in subdivision (a) of section\neleven hundred one of this chapter, shall not be deemed to be a vendor,\nfor purposes of article twenty-eight of this chapter, solely by reason\nof (1) having its advertising stored on a server or other computer\nequipment located in this state (other than a server or other computer\nequipment owned or leased by such person), or (2) having its advertising\ndisseminated or displayed on the Internet by an individual or entity\nsubject to tax under section one hundred eighty-three, one hundred\neighty-four or one hundred eighty-six, or article nine-A, twenty-two or\nthirty-three of this chapter.\n (d)(i) Except as provided in clause (B) of subparagraph (ii) of\nparagraph eight of subdivision (b) of section eleven hundred one of this\nchapter, a person selling telecommunication services or an Internet\naccess service shall not be deemed to be a vendor, for purposes of\narticle twenty-eight or twenty-nine of this chapter, of tangible\npersonal property or services sold by the purchaser of such\ntelecommunication services or Internet access service solely because\nsuch purchaser uses such telecommunication services or Internet access\nservice as a means to sell such tangible personal property or services.\n (ii) For purposes of this subdivision, the term "person" shall refer\nto any person within the meaning prescribed in either paragraph (c) of\nsubdivision one of section one hundred eighty-six-e of this chapter or\nsubdivision (a) of section eleven hundred one of this chapter, the term\n"telecommunication services" shall have the meaning prescribed in\nparagraph (g) of subdivision one of section one hundred eighty-six-e of\nthis chapter, and the term "Internet access service" shall have the\nmeaning prescribed in subdivision (v) of section eleven hundred fifteen\nof this chapter.\n