§ 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.