§ 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.