Tax Law, §§ 483, 484(a) and 485(d)
In the case of sales of cigarettes to a chain store having 15 or more outlets, excluding vending machine operators, which cigarettes are delivered to a central warehouse owned and operated by such chain store and which are delivered by the chain store to its retail outlets, the cost of the agent shall be presumed to be the basic cost of cigarettes.
In the case of sales of cigarettes at retail by an agent, the cost of the agent shall be the same as the cost of the CMSA retail dealer, as an agent is considered to be a CMSA retail dealer for purposes of its sales of cigarettes to consumers (see section 82.5 of this Part).
Basic cost of cigarettes | $86.00 |
Presumed cost of doing business | |
Percentage mark-up (.875% of $86.00) | + .7525 |
2 cents/package of 20 cigarettes multiplied by | |
10 packages/carton | + .20 |
Cost of the agent for sales to CMSA wholesale dealers | |
(rounded to next higher cent) | $86.96 |
Basic cost of cigarettes | $86.00 |
Presumed cost of doing business | |
Percentage mark-up (1.5% of $86.00) | + 1.29 |
2 cents/package of 20 cigarettes multiplied by | |
10 packages/carton | + .20 |
Cost of the agent for sales to chain stores | $87.49 |
Basic cost of cigarettes | $86.00 |
Presumed cost of doing business | |
Percentage mark-up (3.875% of $86.00) | +$3.3325 |
2 cents/package of 20 cigarettes multiplied by | |
10 packages/carton | + .20 |
Cost of the agent for sales to CMSA retail dealers | |
(rounded to next higher cent) | $89.54 |
N.Y. Comp. Codes R. & Regs. Tit. 20 § 82.2