§ 4-20 Out-of-City Sales.
RCNY § 4-20
(a)The law provides that the tax is not applicable to cigarettes possessed in the City by any agent or wholesale dealer for sale to a dealer outside the City, or for sale and shipment to any person in another state for use there.
(b)Under this provision, the only sales by an agent or wholesale dealer of cigarettes which are shipped to a point outside the city which are not subject to the tax, are sales to a dealer outside the city, or shipments to any person outside the state for use there. The sale of cigarettes shipped to a person outside the city, but within the state, for use there is subject to the tax. For example: A sale by an agent or wholesale dealer to another dealer in Westchester County is not subject to the tax. The sale of cigarettes by a dealer who ships them to an ultimate consumer in Westchester County for use there is subject to tax. The sale of cigarettes by a dealer shipped to an ultimate consumer in New Jersey for use there is not subject to the tax.
(c)Where an agent or wholesale dealer sells cigarettes to a dealer for sale outside the City or State, or to another dealer for sale to a dealer outside the City or State, he shall demand and receive from the purchaser, at the time of delivery of the cigarettes, or at the time of sale, a certificate in writing signed by the purchaser, which certificate shall be substantially in the following form: (Date) ________________ "To ____________________________ (name of agent or wholesale dealer). "I hereby certify that the cigarettes purchased by me and described in the attached invoice will be resold outside the city of New York. ___________________________________________ Signature of Purchaser Address of Purchaser" One copy of such invoice and the above certificate must be retained by the agent or wholesale dealer for inspection by the Commissioner of Finance representative.
