2006 New York Code - Exemptions From Use Tax.

 
    §  11-2011  Exemptions  from  use  tax. The following uses of property
  shall not be subject to the compensating  use  tax  imposed  under  this
  subchapter:
    (1)  In  respect  to the use of property used by the purchaser in this
  city prior to August first, nineteen hundred sixty-five.
    (2) In respect to the use of property purchased by the  user  while  a
  nonresident  of  this  city,  except  in  the  case of tangible personal
  property which the user, in the performance of a contract,  incorporates
  into  real  property  located in the city. A person while engaged in any
  manner in carrying on in this city any employment,  trade,  business  or
  profession, shall not be deemed a nonresident with respect to the use in
  this city of property in such employment, trade, business or profession.
    (3)  In  respect  to  the use of property or services upon the sale of
  which the purchaser would be expressly exempt  from  the  taxes  imposed
  under subdivision (a), (b) or (c) of section 11-2002 of this part.
    (4)  In  respect  to  the  use  of property which is converted into or
  becomes a  component  part  of  a  product  produced  for  sale  by  the
  purchaser.
    (5)  In  respect  to the use of paper in the publication of newspapers
  and periodicals.
    (6) In respect to  the  use  of  property  used  exclusively  for  the
  temporary   construction,  improvement,  alteration  or  repair  of  any
  building, structure or exhibit, located entirely on land owned  by  this
  city and leased by it to a corporation organized for the sole purpose of
  holding  a world's fair and confining its operations solely to preparing
  for and conducting such fair.
    (7) In respect to the use of property or services to the extent that a
  retail sales or use tax was legally due and paid  thereon,  without  any
  right  to  a  refund  or credit thereof, to any municipal corporation in
  this state. To the extent that the tax imposed by this subchapter is  at
  a  higher  rate  than  the rate of tax in the first taxing jurisdiction,
  this exemption shall be inapplicable and  the  tax  imposed  by  section
  11-2004 of this part shall apply to the extent of the difference in such
  rates.  For  purposes of this paragraph, a payment to the tax commission
  of a tax imposed by a municipal corporation shall be deemed a payment to
  such municipal corporation.
    (8) In respect to the use of property or services to the extent that a
  retail sales or use tax was legally due and paid  thereon,  without  any
  right to a refund or credit thereof, to any other state, or jurisdiction
  within  any other state, but only when it is shown that such other state
  or jurisdiction allows a corresponding exemption  with  respect  to  the
  sale  or use of tangible personal property or services upon which such a
  sales tax or compensating use tax was paid to this state and any of  its
  municipal  corporations.  To  the  extent  that the compensating use tax
  imposed by this subchapter and a compensating use tax imposed by article
  twenty-eight of the tax law are at a higher aggregate rate than the rate
  of tax imposed in the first taxing jurisdiction, this exemption shall be
  inapplicable and the taxes  imposed  by  this  subchapter  and  by  such
  article twenty-eight shall apply to the extent of the difference between
  such  aggregate rate and the rate paid in the first taxing jurisdiction.
  In such event, the amount payable shall be  allocated  between  the  tax
  imposed  by this subchapter and tax imposed by such article twenty-eight
  in proportion to the respective rates of such taxes.