N.Y.
Tax Law Section 490
Excise tax on medical cannabis
1.
(a) For purposes of this article, the terms “medical cannabis,” “registered organization,” “certified patient,” and “designated caregiver” shall have the same definitions as in Cannabis Law § 3 (Definitions)section three of the cannabis law.(b)
As used in this section, where not otherwise specifically defined and unless a different meaning is clearly required “gross receipt” means the amount received in or by reason of any sale, conditional or otherwise, of medical cannabis or in or by reason of the furnishing of medical cannabis from the sale of medical cannabis provided by a registered organization to a certified patient or designated caregiver. Gross receipt is expressed in money, whether paid in cash, credit or property of any kind or nature, and shall be determined without any deduction therefrom on account of the cost of the service sold or the cost of materials, labor or services used or other costs, interest or discount paid, or any other expenses whatsoever. “Amount received” for the purpose of the definition of gross receipt, as the term gross receipt is used throughout this article, means the amount charged for the provision of medical cannabis.2.
There is hereby imposed an excise tax on the gross receipts from the sale of medical cannabis by a registered organization to a certified patient or designated caregiver, to be paid by the registered organization, at the rate of three and fifteen-hundredths percent. The tax imposed by this article shall be charged against and be paid by the registered organization and shall not be added as a separate charge or line item on any sales slip, invoice, receipt or other statement or memorandum of the price given to the retail customer.3.
The commissioner may make, adopt and amend rules, regulations, procedures and forms necessary for the proper administration of this article.4.
Every registered organization that makes sales of medical cannabis subject to the tax imposed by this article shall, on or before the twentieth date of each month, file with the commissioner a return on forms to be prescribed by the commissioner, showing its receipts from the retail sale of medical cannabis during the preceding calendar month and the amount of tax due thereon. Such returns shall contain such further information as the commissioner may require. Every registered organization required to file a return under this section shall, at the time of filing such return, pay to the commissioner the total amount of tax due on its retail sales of medical cannabis for the period covered by such return. If a return is not filed when due, the tax shall be due on the day on which the return is required to be filed.5.
Whenever the commissioner shall determine that any moneys received under the provisions of this article were paid in error, he may cause the same to be refunded, with interest, in accordance with such rules and regulations as he may prescribe, except that no interest shall be allowed or paid if the amount thereof would be less than one dollar. Such interest shall be at the overpayment rate set by the commissioner pursuant to subdivision twenty-sixth of § 171 (Powers and duties of commissioner of taxation and finance)section one hundred seventy-one of this chapter, or if no rate is set, at the rate of six percent per annum, from the date when the tax, penalty or interest to be refunded was paid to a date preceding the date of the refund check by not more than thirty days. Provided, however, that for the purposes of this subdivision, any tax paid before the last day prescribed for its payment shall be deemed to have been paid on such last day. Such moneys received under the provisions of this article which the commissioner shall determine were paid in error, may be refunded out of funds in the custody of the comptroller to the credit of such taxes provided an application therefor is filed with the commissioner within two years from the time the erroneous payment was made.6.
The provisions of article 27 (Corporate Tax Procedure and Administration)article twenty-seven of this chapter shall apply to the tax imposed by this article in the same manner and with the same force and effect as if the language of such article had been incorporated in full into this section and had expressly referred to the tax imposed by this article, except to the extent that any provision of such article is either inconsistent with a provision of this article or is not relevant to this article.7.
All taxes, interest and penalties collected or received by the commissioner under this article shall be deposited and disposed of pursuant to the provisions of § 171-A (Deposit and disposition of revenue)section one hundred seventy-one-a of this chapter, provided that an amount equal to one hundred percent collected under this article less any amount determined by the commissioner to be reserved by the comptroller for refunds or reimbursements shall be paid by the comptroller to the credit of the medical cannabis trust fund established by State Finance Law § 89-H (Medical cannabis trust fund)section eighty-nine-h of the state finance law.8.
A registered organization that dispenses medical cannabis shall provide to the department information on where the medical cannabis was dispensed and where the medical cannabis was manufactured. A registered organization that obtains cannabis from another registered organization shall obtain from such registered organization information on where the medical cannabis was manufactured. * NB Repealed July 5, 2028
Source:
Section 490 — Excise tax on medical cannabis, https://www.nysenate.gov/legislation/laws/TAX/490 (updated Jul. 12, 2024; accessed Oct. 26, 2024).
