Intra-aortic balloon pumps and catheters distributed to hospitals free of charge in New York as promotional materials were subject to New York use tax. Though hospitals are exempt organizations and medical equipment and supplies are exempt from sales and use tax (except when purchased for use in performing medical services for compensation), the hospitals did not purchase the equipment. The manufacturer also did not purchase the equipment, which, as tangible personal property, was thus subject to use tax. (New York Division of Tax Appeals, Tax Appeals Tribunal, Arrow International, Inc., June 17, 2004)