Sec. 87.2. Sales to meet competition

Tax Law, § 486(b)

(a) Any agent or CMSA wholesale dealer may advertise, offer to sell or sell cigarettes at a price made in good faith to meet the price of a competitor who is rendering the same type of services and is selling the same article at cost to such competitor as an agent or as a CMSA wholesale dealer, whichever the case may be.

(b) Any CMSA retail dealer may advertise, offer to sell or sell cigarettes at a price made in good faith to meet the price of a competitor who is selling the same article at cost to such competitor as a CMSA retail dealer.

(c) The price of cigarettes advertised, offered for sale, or sold under the exceptions specified in section 87.1 of this Part shall not be considered the price of a competitor for purposes of this section, and shall not be used as a basis for establishing prices below cost, nor shall the price established at a bankruptcy sale be considered the price of a competitor for purposes of this section.

(d) In the absence of proof of the price of a competitor, the competitor's cost of the agent, cost of the CMSA wholesale dealer or the cost of the CMSA retail dealer, as the case may be, which is established pursuant to section 483 of the Tax Law, may be deemed the price of a competitor for purposes of this section.