(b) 1. (A) The term "cost of the agent" shall mean the basic cost of
cigarettes plus the cost of doing business by the agent as evidenced by
the accounting standards and methods regularly employed by said agent in
his determination of costs for the purpose of federal income tax
reporting for the total operation of his establishment, and must
include, without limitation, labor, including salaries of executives and
officers, rent, depreciation, selling costs, maintenance of equipment,
delivery costs, interest payable, all types of licenses, taxes,
insurance and advertising expressed as a percentage and applied to the
basic cost of cigarettes. Any fractional part of a cent in the cost to
the agent per carton of cigarettes shall be rounded off to the next
higher cent. In the case of sales at retail by an agent, the "cost of
the agent" shall be the same as the "cost of the retail dealer". In the
case of sales of cigarettes to a chain store having fifteen or more
retail outlets, excluding vending machine operators, which are delivered
to a central warehouse owned and operated by such chain store and which
are delivered to its retail outlets by the chain store, the "cost of the
agent" shall be presumed to be the basic cost of cigarettes. There shall
be determined a separate cost of the agent for sales to wholesale
dealers and for sales to retail dealers.
(B) In the absence of the filing with the commissioner of satisfactory
proof of a lesser cost of doing business of the agent making the sale,
the cost of doing business by the agent shall be presumed to be
seven-eighths of one percent of the basic cost of cigarettes for sales
to wholesale dealers plus one cent per package of ten cigarettes, two
cents per package of twenty cigarettes and in the case of a package
containing more than twenty cigarettes, two cents and one-half of a cent
for each five cigarettes in excess of twenty cigarettes, one and
one-half percent of the basic cost of cigarettes for sales to chain
stores plus one cent per package of ten cigarettes, two cents per
package of twenty cigarettes and in the case of a package containing
more than twenty cigarettes, two cents and one-half of a cent for each
five cigarettes in excess of twenty cigarettes and three and
seven-eighths percent of the basic cost of cigarettes with respect to
sales to retail dealers plus one cent per package of ten cigarettes, two
cents per package of twenty cigarettes and in the case of a package
containing more than twenty cigarettes, two cents and one-half of a cent
for each five cigarettes in excess of twenty cigarettes and the
foregoing cents per pack shall be included in the "cost of doing
business by the agent" referred to in paragraphs two and three of this
subdivision.
2. (A) The term "cost of the wholesale dealer" shall mean the basic
cost of cigarettes plus the cost of doing business by the wholesale
dealer as evidenced by the accounting standards and methods regularly
employed by said wholesale dealer in his determination of costs for the
purpose of federal income tax reporting for the total operation of his
establishment, and must include, without limitation, labor, including
salaries of executives and officers, rent, depreciation, selling costs,
maintenance of equipment, delivery costs, interest payable, all types of
licenses, taxes, insurance and advertising expressed as a percentage and
applied to the basic cost of cigarettes, plus the cost of doing business
by the agent with respect to sales of cigarettes to wholesale dealers.
Any fractional part of a cent in the cost to the wholesale dealer per
carton of cigarettes shall be rounded off to the next higher cent. In
the case of sales at retail by a wholesale dealer, the "cost of the
wholesale dealer" shall be the same as the "cost of the retail dealer".
There shall be determined a separate cost of the wholesale dealer for
sales to chain stores and for sales to retail dealers.
(B) In the absence of the filing with the tax commission of
satisfactory proof of a lesser cost of doing business of the wholesale
dealer making the sale, the cost of doing business by the wholesale
dealer with respect to sales to retail dealers shall be presumed to be
three per centum of the basic cost of cigarettes, and with respect to
sales to chain stores, five-eighths of one percent of the basic cost of
cigarettes.
3. (A) The term "cost of the retail dealer" shall mean the basic cost
of cigarettes plus the cost of doing business by the retail dealer as
evidenced by the accounting standards and methods regularly employed by
said retail dealer in his determination of costs for the purpose of
federal income tax reporting for the total operation of his
establishment, and shall include, without limitation, labor, including
salaries of executives and officers, rent, depreciation, selling costs,
maintenance of equipment, delivery costs, interest payable, all types of
licenses, taxes, insurance and advertising expressed as a percentage and
applied to the basic cost of cigarettes, plus the cost of doing business
by the agent with respect to sales of cigarettes to retail dealers. Any
fractional part of a cent in the cost to the retail dealer per package
or per carton shall be rounded off to the next higher cent.
(B) In the absence of the filing with the commissioner of taxation and
finance of satisfactory proof of a lesser cost of doing business by the
retail dealer making the sale, the cost of doing business by the retail
dealer shall be presumed to be seven per centum of the sum of the basic
cost of cigarettes plus the cost of doing business by the agent with
respect to cigarettes sold to retail dealers.