Scope
New York Tax Law sections 1115(a)(37) and 1115(y), as described by the Department of Taxation and Finance in Tax Bulletin ST-405, exempt from sales tax certain property that an operator of an Internet data center purchases for use in the data center and certain services related to that property. An operator of an Internet data center is defined narrowly (a high-security web-hosting facility providing uninterrupted Internet access and traffic management for customers' web sites); the exemption does not cover every data center.
- Geographic scope
- New York
- Jurisdiction
- State
- Authority type
- Legislature
- Issuing authority
- New York State Legislature
Dates
- Adopted
- No adoption day is recorded
- Effective
- 1 September 2000
- Scheduled expiration
- None scheduled
- Ended
- Not recorded as ended
- Completion condition
- None stated
- Source document
- 23 February 2026
- Last checked
- 23 September 2026 (earlier than tracker date 5 October 2026; not an automatic status change)
Summary
New York exempts from state and local sales and use tax certain machinery, equipment and other property bought by an operator of an Internet data center for use in the center, and certain services on that property, under Tax Law sections 1115(a)(37) and 1115(y). The Department of Taxation and Finance bulletin describing the exemption was updated on 23 February 2026, and the Department's 2000 memorandum says the amendments took effect on 1 September 2000. The exemption applies only to operators that meet the web-hosting definition.
What this does not establish
- The statute text on nysenate.gov returns HTTP 403 to automated requests; the record relies on the Department of Taxation and Finance bulletin and memorandum, which describe the law and are not the law itself.
- Pending bill A10216/S9288 would repeal these provisions; it is a separate proposed record and has not passed.
- The 23 February 2026 date is the bulletin's last update, not a change to the law.
Unresolved questions
None recorded.
Relationships
Supersession means a later instrument replaces the earlier legal effect. Repeal links identify the repeal instrument and the measure it ends. A later implementation or related letter is not treated as a replacement unless the record says so.
- Related, not a replacement Bill to repeal the Internet data center sales tax exemption (Proposed)
Sources
https://www.tax.ny.gov/pubs_and_bulls/tg_bulletins/st/internet_data_centers.htm