§ 1230. Exempt organizations. Any tax imposed under the authority of
sections twelve hundred one through twelve hundred five shall not be
imposed on any transaction by or with the following:

(a) The state of New York, or any of its agencies, instrumentalities,
public corporations (including a public corporation created pursuant to
agreement or compact with another state or Canada) or political
subdivisions where it is the purchaser, user or consumer;

(b) The United States of America, and any of its agencies and
instrumentalities insofar as it is immune from taxation where it is the
purchaser, user or consumer;

(c) The United Nations or other international organizations of which
the United States of America is a member; and

(d) Any corporation, or association, or trust, or community chest,
fund or foundation, organized and operated exclusively for religious,
charitable, or educational purposes, or for the prevention of cruelty to
children or animals, and no part of the net earnings of which inures to
the benefit of any private shareholder or individual, and no substantial
part of the activities of which is carrying on propaganda, or otherwise
attempting to influence legislation; provided, however, that this
subdivision shall not apply to an organization operated for the primary
purpose of carrying on a trade or business for profit, whether or not
all of its profits are payable to one or more organizations described in
this subdivision. Nothing in this subdivision shall prohibit any
organization exempt from taxation pursuant to this section from
collecting the taxes imposed under the authority of section twelve
hundred two-f from individuals who are doing business with such exempt
organization and who are not exempt from taxation pursuant to this
section.