N.Y. Comp. Codes R. & Regs. tit. 20 § 82.1

Current through Register Vol. 46, No. 25, June 18, 2024

Section 82.1 - General

Tax Law, §§ 475, 482-a, 483, 488

(a) While it is recognized that agent, wholesale dealer, chain store and retail dealer activities are not mutually exclusive, the intent and the integrity of the cigarette marketing standards, in lieu of requiring accountability for all individual cigarette transactions made within New York State, necessitate that substantially all of an agent's, CMSA wholesale dealer's, chain store's or CMSA retail dealer's cigarette activities, be activities for which an agent, CMSA wholesale dealer, CMSA retail dealer, or chain store, respectively, is licensed or registered. That is, a person who wishes to purchase and/or sell cigarettes in this State pursuant to any one section of this Part, shall not conduct secondary cigarette activities in excess of 10 percent of such person's total cigarette activities. Such percentage is to be measured by the number of cartons of cigarettes sold in each calendar quarter. Accordingly:

(1) substantially all (i.e., 90 percent or more) of such an agent's cigarette activities must pertain to unstamped packages of cigarettes upon which the agent affixes New York State cigarette tax stamps;

(2) substantially all of such a CMSA wholesale dealer's cigarette activities must pertain to cigarettes sold for purposes of resale;

(3) substantially all of such a chain store's cigarette activities must pertain to cigarettes sold at retail as described in section 80.2(c) of this Title; and

(4) substantially all of such a CMSA retail dealer's cigarette activities must pertain to cigarettes sold to consumers.

(b) A person, other than one purchasing and/or selling cigarettes pursuant to any one section of this Part in accordance with subdivision (a) of this section (i.e., exclusively as an agent, CMSA wholesale dealer, chain store or CMSA retail dealer), who wishes to purchase and/or sell cigarettes in this State in more than one capacity, at a price which is less than the cost of the CMSA retail dealer (as defined in section 82.5 of this Part), may do so with the written consent of the Department of Taxation and Finance. Such person must separately account for all individual cigarette transactions and, in determining such person's costs of doing business, must attribute specific costs to specific sales of cigarettes in each of the capacities in which the person is eligible to conduct business. Such attribution must be to the satisfaction of the department. For example, a person who qualifies as a CMSA wholesale dealer and who makes retail sales of cigarettes in excess of 10 percent may be permitted to purchase and/or sell cigarettes as both a CMSA wholesale dealer and a CMSA retail dealer, provided such person:

(1) can clearly account for its activities in each capacity;

(2) can satisfactorily attribute costs to sales made in each capacity;

(3) complies with the licensing provisions in Part 72 and the registration provisions in Part 73 of this Title.

N.Y. Comp. Codes R. & Regs. Tit. 20 § 82.1