§ 4-16 Compensation of Agents for Services.
RCNY § 4-16
(a)The law provides that whenever the Commissioner of Finance shall sell, consign or deliver to any agent authorized to affix stamps to be used in payment of the tax imposed thereby, such agent shall be entitled to receive as compensation for his services and expenses in affixing such stamps and to retain out of the monies to be paid by him for such stamps, a commission on the par value thereof. The Commissioner of Finance is authorized to prescribe a schedule of commissions not exceeding five percentum of the par value of such stamps for affixing such stamps. The Commissioner of Finance hereby prescribes the following commissions to be allowed to each such agent as compensation for his services and expenses in affixing stamps.
(b)Where a joint stamp is issued by the State of New York and the City for the payment of the taxes imposed by the City's Cigarette Tax Law and by Article 20 of the Tax Law of the State, in lieu of a single stamp evidencing payment of the cigarette tax, and such joint stamp is issued by the State of New York and the City of New York for payment of the State tax (at the rate of $1.50 per package of 20 cigarettes) and the City tax (at the rate of $1.50 per package of 20 cigarettes), the following schedule of commissions have been fixed by the Commissioner of Finance pursuant to the City's Cigarette Tax Law with the approval of the New York State Department of Taxation and Finance, and for the purposes of this schedule the par value of a joint stamp issued by the State of New York and the City of New York for payment of the State tax (at the rate of $1.50 per package of 20 cigarettes), and the City tax (at the rate of $1.50 per package of 20 cigarettes) shall be deemed to be $1.50 each for State purposes and $1.50 each for City purposes. On the City par value of such joint stamps, not exceeding $5,611,200 purchased during each calendar year, a commission of 0.2171 percent thereof except as otherwise provided herein; and on the City par value of such joint stamps in excess of $5,611,200 purchased during each calendar year a commission of 0.0992 percent thereof. Said rate of 0.0992 percent shall also apply, even though the total City par value of joint stamps purchased during any calendar year does not exceed $5,611,200, whenever the value of New York State cigarette tax stamps (including the amount of the New York State cigarette tax represented by such joint stamps) purchased by any agent during each calendar year exceeds the sum of $5,611,200, computed at the State par value of $1.50 each. However, for the purpose of determining the point when said amount of $5,611,200 is reached, whenever the quantity of New York State cigarette tax stamps and/or the portion of the New York State cigarette tax included in joint stamps purchased by an agent at any one time brings the agent's total purchases of stamps evidencing payment of the New York State cigarette tax to at least $5,611,200, the amount purchased at such time shall be first applied to the previous total of purchases of stamps evidencing payment of the New York State cigarette tax until $5,611,200 is reached.
(c)Where a single stamp is issued by the City of New York evidencing payment of the City's cigarette tax, and such stamp is for payment of the City's tax at the rate of four cents for each ten cigarettes or fraction thereof, the commission hereby fixed is 1.10 percent on the par value of such single stamp purchased.
(d)Any commissions allowable hereunder shall be deducted by the agent from the purchase price of the stamps at the time payment is made therefor. No commissions shall be allowed on purchases of less than one hundred dollars. No commission shall be allowed to any purchaser of stamps other than an agent.
