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 2 - Cigarette Marketing Standards
Part 86 - Determination Of Cost
Section 86.2 - Manufacturer's gratis merchandise and payments

Tax Law, § 485(a)(2)

Any merchandise given gratis or any payment made to an agent, to a CMSA wholesale dealer or to a CMSA retail dealer by a manufacturer of cigarettes for display, advertising, promotional purposes or otherwise, is not a trade discount nor shall they be considered in determining the cost of the agent, the cost of the CMSA wholesale dealer or the cost of the CMSA retail dealer.