N.Y. Comp. Codes R. & Regs. tit. 20, § 528.14 – Tangible personal property sold through coin operated vending machines.

(1) is primarily engaged in making sales of tangible personal property through vending machines at 10 cents or less; and
(2) maintains records satisfactory to the Department of Taxation and Finance. (See section 533.2 of this Title.) Cross reference:
Cross reference:
See section 527.8(g)-(h) of this Title for sales of food through coin operated vending machines at 10 cents or less.
(b) Tangible personal property sold through coin operated bulk vending machines at 25 cents or less.
(1) Exemption. Tangible personal property sold through coin operated bulk vending machines at 25 cents or less is exempt from the sales and use tax when the vending machine operator:
1. (i) is primarily engaged in making sales of tangible personal property through bulk vending machines at 25 cents or less; and
2. (ii) maintains records satisfactory to the Department of Taxation and Finance. (See section 533.2 of this Title.) Food or drink sold through a coin operated bulk vending machine at 25 cents or less is exempt only when the bulk vending machine is located on premises which have no facilities provided for customers for on premises consumption.
(2) Bulk vending machine. As used in this section, bulk vending machine means a vending machine, containing unsorted merchandise, which, upon insertion of a coin, dispenses such merchandise in approximately equal portions, at random and without selection by the customer. Gumballs, candy and various toys or trinkets in plastic capsules are typical of the merchandise typically dispensed in bulk vending machines.
(c) Primarily.
The term primarily, as used in this section, means 50 percent or more.
(1) For purposes of subdivision (a) of this section, 50 percent or more of the vending machine operator's total receipts from all sources must be derived from sales of tangible property sold through vending machines at 10 cents or less. Example 1: Example 2: Example 3:
Example 1:
A vending machine operator's schedule of receipts shows:
Price Items sold Receipts
10¢ 1,000 $100.
50¢ 200 100.
$200.
As the receipts from sales of items priced at 10 cents are 50 percent or more of the total receipts, such sales are not subject to tax. The receipts from the sales of items at 50 cents are taxable.
Example 2:
A vending machine operator's schedule of receipts shows:
Price Items sold Receipts
10¢ 400 $40.
50¢ 100 50.
$90.
Although the number of items sold at 10 cents is 50 percent or more of the total number of items sold, the receipts from such sales are less than 50 percent of the total receipts. Therefore, total receipts, including those sold at 10 cents are subject to tax.
Example 3:
A supermarket has vending machines which dispense candy and trinkets for 10 cents. The receipts in a given period from the machines are $200 and the receipts from the remainder of the business are $5,000. The supermarket is not primarily engaged in making sales at 10 cents or less through coin operated vending machines and the receipts therefrom must be included in the supermarket's taxable receipts when computing the tax due.
(2) For purposes of subdivision (b) of this section, 50 percent or more of the bulk vending machine operator's total receipts from all sources must be derived from sales of tangible personal property sold through coin operated bulk vending machines at 25 cents or less. Example 1:
Example 1:
A bulk vending machine operator's schedule of receipts shows:
Price Items sold Receipts
25¢ 1,000 $250.
50¢ 200 100.
$350.
As the receipts from sales of items priced at 25 cents are 50 percent or more of the total receipts, such sales are not subject to tax. The receipts from the sales of items at 50 cents are taxable.
Example 2:
A bulk vending machine operator's schedule of receipts shows:
Price Items sold Receipts
25¢ 1,000 $250.
50¢ 800 400.
$650.
Although the number of items sold at 25 cents is 50 percent or more of the total number of items sold, the receipts from such sales are less than 50 percent of the total receipts. Therefore, total receipts, including those sold at 25 cents are subject to tax.
Example 3:
A supermarket has bulk vending machines which dispense candy and trinkets for 25 cents or less. The receipts in a given period from the machines are $200 and the receipts from the remainder of the business are $5,000. The supermarket is not primarily engaged in making sales at 25 cents or less through coin operated bulk vending machines and the receipts therefrom must be included in the supermaket's taxable receipts when computing the tax due.
(d) Taxable sales.
(1) Sales through coin operated vending machines (which are not bulk vending machines) subject to the sales and use tax are:
1. (i) tangible personal property sold at an amount in excess of 10 cents; Example 1:
  Example 1:
  The sale of a photocopy at 15 cents through a coin operated machine is a taxable sale of tangible personal property.
2. (ii) tangible personal property sold at 10 cents or less when the vending machine operator is not primarily engaged in making such sales (see Example 3 of paragraph [b][1] of this section);
3. (iii) services to tangible personal property; Example 2: Example 3:
  Example 2:
  Laminating services provided by coin operated vending machines are taxable.
  Example 3:
  The cleaning of a bowling ball by a coin operated vending machine is taxable.
4. (iv) food and drink sold at an amount in excess of 10 cents. (See section 527.8 [g] and [h] of this Title for sales of food and drink at 10 cents or less.)
(2) Sales through coin operated bulk vending machines subject to the sales and use tax are:
1. (i) tangible personal property sold at an amount in excess of 25 cents;
2. (ii) tangible personal property sold at 25 cents or less when the vending machine operator is not primarily engaged in making such sales;
3. (iii) services to tangible personal property;
4. (iv) food and drink sold at 11 cents or more when the bulk vending machine is located on premises considered to be eating establishments selling food or drink for on premises consumption; and
5. (v) food and drink sold at an amount in excess of 25 cents.
  (e)
(1) Collection of tax. Vending machine operators are required to collect the tax in accordance with the tax bracket schedules on sales of tangible personal property sold at an amount in excess of 10 cents and on taxable services to tangible personal property. Bulk vending machine operators are required to collect the tax in accordance with the tax bracket schedules on sales of tangible personal property sold at an amount in excess of 25 cents. (See Part 530 of this Title.)
(2) When sales of tangible personal property are made through vending machines at 10 cents or less, or through bulk vending machines at 25 cents or less, by a vending machine operator or bulk vending machine operator who is not primarily engaged in making such sales, the operator is liable for the payment of the tax on his sales even though the tax is in an amount which cannot be collected from the purchaser. (See section 533.4 of this Title for payment of tax.)

Price	Items sold	Receipts
10¢	1,000	$100.
50¢	200	100.
		$200.

Price	Items sold	Receipts
10¢	400	$40.
50¢	100	50.
		$90.

Price	Items sold	Receipts
25¢	1,000	$250.
50¢	200	100.
		$350.

Price	Items sold	Receipts
25¢	1,000	$250.
50¢	800	400.
		$650.

Tax Law, § 1115(a)(13), (13-a)

(a) Tangible personal property sold through coin operated vending machines at 10 cents or less.

Exemption—Tangible personal property sold through coin operated vending machines at 10 cents or less is exempt from the sales and use tax when the vending machine operator: