2015 New York Laws
TAX - Tax
Article 20-A - (Tax) CIGARETTE MARKETING STANDARDS
485 - Determination of cost of agent, retail dealer or wholesale dealer.

  485.  Determination  of  cost  of agent, retail dealer or wholesale
  dealer. (a) 1. In determining "cost of the retail dealer", "cost of  the
  agent"  and "cost of the wholesale dealer" the tax commission or a court
  shall receive and consider as bearing on the bona fides  of  such  cost,
  evidence  tending  to show that any such person complained against under
  any of the provisions of this article purchased cigarettes, with respect
  to the sale of which complaint is made, at a fictitious price,  or  upon
  terms,  or  in  such a manner, or under such invoices, as to conceal the
  true costs, discounts or terms of purchase, and shall also  receive  and
  consider  as  bearing  on  the  bona fides of such cost, evidence of the
  normal, customary and prevailing terms and discounts in connection  with
  other sales of a similar nature in the trade area or state.
2. Merchandise given gratis or payment made to an agent, retail dealer
  or  wholesale  dealer  by  the  manufacturer  thereof  for  display,  or
  advertising,  or  promotion  purposes,  or  otherwise,  shall   not   be
  considered  in  determining  the cost of cigarettes to the agent, retail
  dealer or wholesale dealer.
(b) In all advertisements, offers for sale or sales involving  two  or
  more  items,  at  least  one of which items is cigarettes, at a combined
  price, and in all advertisements, offers for sale,  or  sales  involving
  the  giving of any gift or concession of any kind whatsoever (whether it
  be coupons or otherwise), the  agent's,  retail  dealer's  or  wholesale
  dealer's  combined  selling  price  shall  not  be below the cost of the
  agent, the cost of the retail  dealer  or  the  cost  of  the  wholesale
  dealer,  respectively,  of  the  total  costs of all articles, products,
  commodities, gifts and concessions included in such transactions.
(c) When one wholesale dealer sells cigarettes to any other  wholesale
  dealer, the former shall not be required to include in his selling price
  to the latter, the cost of the wholesale dealer, as defined by paragraph
  two  of  subdivision  (b)  of  section four hundred eighty-three of this
  article, except that no such sale shall be made at a price less than the
  cost of the agent for sales to wholesale dealers as defined by paragraph
  one of subdivision (b) of section  four  hundred  eighty-three  of  this
  article,  but  the  latter  wholesale  dealer,  upon  resale to a retail
  dealer, shall be deemed to be  the  wholesale  dealer  governed  by  the
  provisions  of  paragraph two of subdivision (b) of section four hundred
  eighty-three of this article.
(d) When one agent sells cigarettes to any  other  agent,  the  former
  shall not be required to include in his selling price to the latter, the
  cost  of  the  agent,  as defined by paragraph one of subdivision (b) of
  section four hundred eighty-three of this article, except that  no  such
  sale shall be made at a price less than the basic cost of cigarettes, as
  defined  by  paragraph  one  of  subdivision (a) of section four hundred
  eighty-three, but the latter agent,  upon  resale  of  such  cigarettes,
  shall be deemed to be the agent governed by paragraph one of subdivision
  (b)  of  section  four  hundred eighty-three of this article. Cigarettes
  sold by an agent to an agent must be picked up at the warehouse  of  the
  selling agent, or delivered to the warehouse of the purchasing agent.