New York Codes, Rules and Regulations
Title 20 - DEPARTMENT OF TAXATION AND FINANCE
Chapter I - Franchise and Certain Business Taxes
Subchapter I - Cigarette Tax, Cigarette Marketing Standards And Tobacco Products Tax
Article 1 - Cigarette Tax
Part 76 - Exemptions From Tax
Section 76.3 - Sales of cigarettes out-of-state

(a) The Constitution of the United States prohibits any state from imposing a tax which directly burdens or unduly impedes interstate or foreign commerce and from attempting to impose a tax on any person, property or privilege which is not within such state's jurisdiction. While it is axiomatic that New York State is without power to impose the cigarette tax under any such circumstances, a licensed cigarette agent may, pursuant to this section, sell cigarettes upon which the tax has not been prepaid and precollected but which are within this State's taxing authority to out-of-state purchasers without incurring any tax liability pursuant to article 20 of the Tax Law.

(b) When such cigarettes upon which the cigarette tax has not been prepaid and precollected are sold for purposes of resale or use outside of the State of New York, the licensed cigarette agent shall require and receive from the out-of-State purchaser, at the time of each delivery and as proof of the exempt sale, a certificate to the effect that the cigarettes (evidenced by an attached detailed invoice or other such document) will be immediately removed from the State to an identified location for such purposes and that such cigarettes shall not be returned to the State for sale or use herein. The certificate must be signed by the purchaser and must be in accordance with the provisions of section 76.1(d) of this Part.

(c) No person other than a duly licensed cigarette agent (or its employees) may possess in this State cigarettes upon which the tax has not been prepaid and precollected for purposes of making out-of-state sales where such cigarettes have come within the jurisdiction of New York State for purposes of taxation. An agent must report all sales of cigarettes to out-of-state purchasers in its monthly cigarette tax return.

(d) See Part 77 of this Title for refund provisions applicable to out-of-state sales of cigarettes upon which the cigarette tax has been paid.