In Advisory Opinion, TSB-A-14(5)S (N.Y.S. Dep’t of Tax. and Fin., Jan. 29, 2014), the Department found that the purchase of a yacht would be exempt from New York sales and use tax if the yacht is used primarily to transport persons or property for hire between states or countries, and if 50 percent or more of the receipts from the yacht’s activities are derived from such activities, determined based on the owner’s intent at the time of purchase. The amount of time the vessel is present in or absent from New York, or whether “New York, NY” is displayed as the hailing port on the vessel, would not control whether the vessel qualified for exemption. If the vessel does not qualify for the exemption, but was used outside New York for more than six months prior to its first use within New York, use tax would be due on the market value as of the vessel’s first use in NY, not to exceed its cost, and a credit could be available if sales tax was paid to another state.