N.Y. Tax Law § 486: Exceptions

§ 486. Exceptions. (a) The provisions of this article shall not apply

to sales made:

1. As an isolated transaction and not the usual course of business; or

2. Where cigarettes are advertised, offered for sale, or sold by any

fiduciary or other officer acting under the order or direction of any

court.

(b) 1. Any retail dealer may advertise, offer to sell, or sell

cigarettes at a price made in good faith to meet the price of a

competitor who is selling the same article at cost to him as a retail

dealer. Any agent or wholesale dealer may advertise, offer to sell or

sell cigarettes at a price made in good faith to meet the price of a

competitor who is rendering the same type of services and is selling the

same article at cost to him as an agent or as a wholesale dealer, as the

case may be. The price of cigarettes advertised, offered for sale, or

sold under the exceptions specified in subdivision (a) of this section

shall not be considered the price of a competitor and shall not be used

as a basis for establishing prices below cost, nor shall the price

established at a bankruptcy sale be considered the price of a competitor

within the purview of this section.

2. In the absence of proof of the price of a competitor, the cost of

the retail dealer or the cost of the agent or wholesale dealer, as the

case may be, which is established pursuant to section four hundred

eighty-three of this article, may be deemed the price of a competitor

within the meaning of this section.

(c) In establishing the cost of cigarettes of the retail dealer, agent

or wholesale dealer, the invoice cost of said cigarettes purchase at a

forced bankruptcy, or closeout sale, or other sale outside of the

ordinary channels of trade, may not be used as a basis for justifying a

price lower than one based upon the replacement cost of the cigarettes

to the retail dealer, agent or wholesale dealer in the quantity last

purchased through the ordinary channels of trade.