§ 1118. Exemptions from use tax. The following uses of property and\nservices shall not be subject to the compensating use tax imposed under\nthis article:\n (1) In respect to the use of property used by the purchaser in this\nstate prior to August first, nineteen hundred sixty-five.\n (2)(a) In respect to the use of property or services purchased by the\nuser while a nonresident of this state, except in the case of tangible\npersonal property or services which the user, in the performance of a\ncontract, incorporates into real property located in the state. A person\nwhile engaged in any manner in carrying on in this state any employment,\ntrade, business or profession, shall not be deemed a nonresident with\nrespect to the use in this state of property or services in such\nemployment, trade, business or profession. This exemption does not apply\nto the use of qualified property where the qualified property is\npurchased primarily to carry individuals, whether or not for hire, who\nare agents, employees, officers, shareholders, members, managers,\npartners, or directors of (A) the purchaser, where any of those\nindividuals was a resident of this state when the qualified property was\npurchased or (B) any affiliated person that was a resident when the\nqualified property was purchased. For purposes of this subdivision: (i)\npersons are affiliated persons with respect to each other where one of\nthe persons has an ownership interest of more than five percent, whether\ndirect or indirect, in the other, or where an ownership interest of more\nthan five percent, whether direct or indirect, is held in each of the\npersons by another person or by a group of other persons that are\naffiliated persons with respect to each other; (ii) "qualified property"\nmeans vessels and motor vehicles; and (iii) "carry" means to take any\nperson from one point to another, whether for the business purposes or\npleasure of that person. For an exception to the exclusions from the\ndefinition of "retail sale" applicable to vessels, see subdivision (q)\nof section eleven hundred eleven of this article.\n (b) Notwithstanding any provision of this article to the contrary, the\nexclusion in paragraph (a) of this subdivision shall not apply to the\nuse within the state of property or a service purchased outside this\nstate by a nonresident that is not an individual, unless such\nnonresident has been doing business outside the state for at least six\nmonths prior to the date such nonresident brought such property or\nservice into this state.\n (3) In respect to the use of property or services upon the sale of\nwhich the purchaser would be expressly exempt from the taxes imposed\nunder subdivision (a), (b) or (c) of section eleven hundred five. In\nrespect to the use of property to the extent that it is exempt from the\nsales tax under subdivision (g) of section eleven hundred eleven of this\narticle.\n (4) In respect to the use of property which is converted into or\nbecomes a component part of a product produced for sale by the\npurchaser.\n (5) In respect to the use of paper in the publication of newspapers\nand periodicals.\n (6) In respect to the use of property used exclusively for the\ntemporary construction, improvement, alteration or repair of any\nbuilding, structure or exhibit, located entirely on land owned by a city\nhaving a population of one million or more and leased by it to a\ncorporation organized for the sole purpose of holding a world's fair and\nconfining its operations solely to preparing for and conducting such\nfair.\n (7) (a) In respect to the use of property or services to the extent\nthat a retail sales or use tax was legally due and paid thereon, without\nany right to a refund or credit thereof, to any other state or\njurisdiction within any other state but only when it is shown that such\nother state or jurisdiction allows a corresponding exemption with\nrespect to the sale or use of tangible personal property or services
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