N.Y. Tax Law § 486 — Exceptions

§ 486. Exceptions. (a) The provisions of this article shall not apply\nto sales made:\n 1. As an isolated transaction and not the usual course of business; or\n 2. Where cigarettes are advertised, offered for sale, or sold by any\nfiduciary or other officer acting under the order or direction of any\ncourt.\n (b) 1. Any retail dealer may advertise, offer to sell, or sell\ncigarettes at a price made in good faith to meet the price of a\ncompetitor who is selling the same article at cost to him as a retail\ndealer. Any agent or wholesale dealer may advertise, offer to sell or\nsell cigarettes at a price made in good faith to meet the price of a\ncompetitor who is rendering the same type of services and is selling the\nsame article at cost to him as an agent or as a wholesale dealer, as the\ncase may be. The price of cigarettes advertised, offered for sale, or\nsold under the exceptions specified in subdivision (a) of this section\nshall not be considered the price of a competitor and shall not be used\nas a basis for establishing prices below cost, nor shall the price\nestablished at a bankruptcy sale be considered the price of a competitor\nwithin the purview of this section.\n 2. In the absence of proof of the price of a competitor, the cost of\nthe retail dealer or the cost of the agent or wholesale dealer, as the\ncase may be, which is established pursuant to section four hundred\neighty-three of this article, may be deemed the price of a competitor\nwithin the meaning of this section.\n (c) In establishing the cost of cigarettes of the retail dealer, agent\nor wholesale dealer, the invoice cost of said cigarettes purchase at a\nforced bankruptcy, or closeout sale, or other sale outside of the\nordinary channels of trade, may not be used as a basis for justifying a\nprice lower than one based upon the replacement cost of the cigarettes\nto the retail dealer, agent or wholesale dealer in the quantity last\npurchased through the ordinary channels of trade.\n