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 86.4 - Sales outside of the ordinary channels of trade

Tax Law, § 486(c)

In establishing the cost of the agent, cost of the CMSA wholesale dealer or cost of the CMSA retail dealer, the invoice cost of cigarettes purchased at a forced bankruptcy, closeout sale or other sale which is outside of the ordinary channels of trade, may not be used as a basis for justifying a price which is lower than one based upon the replacement cost of the cigarettes to the agent, CMSA wholesale dealer or CMSA retail dealer in the quantity last purchased through the ordinary channels of trade.