New York-Minimum Wholesale and Retail Cigarette Prices

As a result of price increases by manufacturers, the minimum wholesale and retail prices for certain brands of cigarettes in New York have changed. Minimum wholesale and retail cigarette prices must be determined by referencing manufacturers’ list prices. When a minimum price change occurs because of a manufacturer’s price increase or decrease, the enforcement date of the change is the second Monday after the price change is announced. If a price change is announced on a Monday, that day is considered to be the first Monday. The enforcement date is in effect whether or not a manufacturer notifies the Tax Department of the price change. After one manufacturer announces a price change, if other manufacturers also change their prices before the second Monday after the initial price change is announced, then those subsequent price changes will also be effective for enforcement purposes on the same second Monday. When a minimum price change occurs because of an excise tax rate change, the enforcement date of the change is the date the rate

Change takes effect. you must refer to the manufacturer’s price list. If you are unable to obtain the price list, please ask your supplier for assistance. You must charge your customers the minimum price or any price in excess of the minimum price. You may not offer merchandise for sale as a tie‑in with cigarettes if the total price of the items sold is less than the minimum price of cigarettes plus your cost for the other merchandise.

<>Furthermore, it is illegal for any cigarette agent, wholesale dealer, or retail dealer to induce, or attempt to induce, or to procure the purchase of cigarettes at a price less than the minimum price set by law. The Tax Department will issue this publication as notification for changes in the minimum prices each time a manufacturer’s price change occurs or a state or city excise tax changes. The prepaid sales tax is paid by the agent at the time the cigarette tax stamps are purchased. The prepaid sales tax is passed along in each subsequent sale down to and including the retail dealer (but is not passed down to the consumer). At the time of delivery, the seller must give the purchaser either Form ST‑133, Certificate of Prepayment of Sales Tax on Cigarettes, or have the required information included on the invoice. State and local sales taxes — State and local sales taxes must be collected from the consumer at the time of the retail sale. Sales tax must be collected upon the total retail sale price, including sales in New York City (effective September 1, 2003). For more information, see Important Notice N‑03‑22, Computation of Sales Tax on Cigarettes Sold within the City of New York. Computing the minimum wholesale cigarette prices Publication 508, Minimum Price List for Cigarettes, lists the minimum prices for standard and nonstandard brands of cigarettes by the carton (20 cigarettes per pack, 10 packs per carton). The basic cost of cigarettes means the invoice cost of cigarettes to the agent who purchases from the manufacturer, or the replacement cost of cigarettes to the agent, in the quantity last purchased (whichever is lower), less all trade discounts (except discounts for cash), to which is added the full face value of any stamps (excise tax only) that are required by law. (The federal excise tax placed on the manufacturer would be included in the invoice cost of cigarettes from the manufacturer.) The basic cost of cigarettes does not include any sales tax prepaid by the agent at the time the cigarette tax stamps were purchased.

Carrying renewed retail cigarette and tobacco licenses and sales tax permit is mandatory to sell any tobacco items in the state of New York. Certificate of Authority and Retail cigarette license must be displayed at location prominently.

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