1. (1) For purposes of this section, the term flag means a light, flexible material, usually rectangular, and bearing one or more symbols or designs to indicate nationality or party. The term also includes related accessories to be used solely for the display of the flag, provided such accessories are sold with the flag for a single charge. For example, this includes a pole, rod, or staff; base or bracket; halyard; lanyard; or finial.

   1. (i) Patches, decals and pins with a design of the flag, for display on clothing or other items, are not flags and are subject to sales tax.

   2. (ii) Kits composed of plastic parts which when assembled resemble a flag are not flags.

      (2)

   3. (i) The flag of the United States of America means the official American Flag, now composed of 13 alternating red and white stripes and 50 white stars on a field of blue.
   4. (ii) Flags which were once official flags of the United States, such as flags with less than 50 white stars when there were fewer than 50 states, are not subject to tax.
   5. (iii) Historic or colonial flags are not exempt. Among these are the Bennington Flag, the Gadsden Flag, the Bedford Flag, the Bunker Hill Flag, the Continental Flag, the Grand Union Flag and the Washington Cruisers Flag.
2. (3) The flag of the State of New York means the official flag of New York State which is blue and charged with the arms of the State, as provided in section 70 of the State Law.

Tax Law, § 1115(a)(11)

(a) Exemption.

Sales of the flag of the United States of America and the flag of New York State are exempt from tax.

(b) Definitions.