Section 1254. Duty to collect taxes

(a) Every person required to collect
  tax, as defined in section eleven hundred thirty-one, who is required to
  collect any state tax imposed under sections eleven hundred five, eleven
  hundred six or eleven hundred ten, shall at the same  time  collect  any
  applicable  tax  imposed  by a city, county or school district under the
  authority of sections twelve hundred ten, twelve hundred eleven,  twelve
  hundred  twelve or twelve hundred twelve-A, and where the state tax is a
  retail sales tax, shall also collect any compensating use tax which  may
  be  applicable as provided in sections twelve hundred thirteen or twelve
  hundred fourteen.
    (b)  Where  the  state   of   New   York,   any   of   its   agencies,
  instrumentalities,  public  corporations (including a public corporation
  created pursuant to agreement or compact with another state  or  Canada)
  or   political  subdivisions  sells  services  or  property  of  a  kind
  ordinarily sold by private persons it shall be considered a  vendor  for
  purposes  of  the  taxes  imposed under the authority of sections twelve
  hundred ten, twelve hundred eleven, twelve  hundred  twelve  and  twelve
  hundred  twelve-A  and shall be required to collect the taxes imposed by
  cities, counties and  school  districts  under  the  authority  of  such
  sections.