Bill Text: NY A04619 | 2023-2024 | General Assembly | Introduced
Bill Title: Increases the tax from nine to sixteen percent of the amount charged for the sale or transfer of adult-use cannabis products to a retail customer; removes requirements that records reflect the total amount of THC content of the adult-use cannabis products sold to or produced by persons who sell such products; makes related provisions.
Spectrum: Partisan Bill (Democrat 9-0)
Status: (Introduced) 2024-01-03 - referred to ways and means [A04619 Detail]
Download: New_York-2023-A04619-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 4619 2023-2024 Regular Sessions IN ASSEMBLY February 17, 2023 ___________ Introduced by M. of A. PEOPLES-STOKES, LUPARDO, WOERNER -- read once and referred to the Committee on Ways and Means AN ACT to amend the tax law, in relation to the imposition of taxes, registration and records of the sale of cannabis; and to repeal certain provisions of such law relating thereto The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Subdivision (k) of section 492 of the tax law is REPEALED. 2 § 2. Section 493 of the tax law, as added by chapter 92 of the laws of 3 2021, is amended to read as follows: 4 § 493. Imposition of tax. (a) [There is hereby imposed a tax on5adult-use cannabis products sold by a distributor to a person who sells6adult-use cannabis products at retail at the following rates:7(1) cannabis flower at the rate of five-tenths of one cent per milli-8gram of the amount of total THC, as reflected on the product label;9(2) concentrated cannabis at the rate of eight-tenths of one cent per10milligram of the amount of total THC, as reflected on the product label;11and12(3) cannabis edible product at the rate of three cents per milligram13of the amount of total THC, as reflected on the product label. This tax14shall accrue at the time of such sale or transfer. Where a person who15distributes adult-use cannabis is licensed under the cannabis law as a16microbusiness or registered organization, such person shall be liable17for the tax, and such tax shall accrue at the time of the retail sale.18(b)] In addition to any other tax imposed by this chapter or other 19 law, there is hereby imposed a tax of [nine] sixteen percent of the 20 amount charged for the sale or transfer of adult-use cannabis products 21 to a retail customer by a person who sells adult-use cannabis products 22 at retail. This tax is imposed on the person who sells adult-use canna- 23 bis at retail and shall accrue at the time of such sale or transfer. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD08127-02-3A. 4619 2 1 [(c)] (b) In addition to the taxes imposed by [subdivisions] subdivi- 2 sion (a) [and (b)] of this section, there is hereby imposed a tax on the 3 sale or transfer of adult-use cannabis products to a retail customer by 4 a person who sells adult-use cannabis products at retail at the rate of 5 four percent of the amount charged by such person for such adult-use 6 cannabis product, which tax shall accrue at the time of such sale or 7 transfer. The tax imposed by this subdivision is imposed on a person who 8 sells adult-use cannabis products at retail, and shall be paid to the 9 commissioner in trust for and on account of a city having a population 10 of a million or more, and counties (other than counties wholly within 11 such a city), towns, villages, and cities with a population of less than 12 a million in which a retail dispensary is located. 13 [(d)] (c) The taxes imposed by this section shall not apply to sales 14 of adult-use cannabis to a person holding a cannabis research license 15 under section thirty-nine of the cannabis law. 16 § 3. Paragraph (i) of subdivision (a) of section 494 of the tax law, 17 as added by chapter 92 of the laws of 2021, is amended to read as 18 follows: 19 (i) Every [distributor on whom tax is imposed under this article and20every] person who sells adult-use cannabis products at retail must file 21 with the commissioner a properly completed application for a certificate 22 of registration before engaging in business. An application for a 23 certificate of registration must be submitted electronically, on a form 24 prescribed by the commissioner, and must be accompanied by a non-refund- 25 able application fee of six hundred dollars. A certificate of registra- 26 tion shall not be assignable or transferable and shall be destroyed 27 immediately upon such person ceasing to do business as specified in such 28 certificate, or in the event that such business never commenced. 29 § 4. Section 496 of the tax law, as added by chapter 92 of the laws of 30 2021, is amended to read as follows: 31 § 496. Records to be kept; penalties. (a) Records to be kept. Every 32 [distributor on whom tax is imposed under this article and every] person 33 who sells adult-use cannabis products at retail shall maintain complete 34 and accurate records in such form as the commissioner may require 35 including, but not limited to, [such items as the total THC content of36the adult-use cannabis products sold to or produced by such person;] 37 complete records of every retail sale of adult-use cannabis, and any 38 other record or information required by the commissioner. Such records 39 must be preserved for a period of three years after the filing of the 40 return to which such records relate and must be provided to the commis- 41 sioner upon request. 42 (b) Penalties. In addition to any other penalty provided in this arti- 43 cle or otherwise imposed by law, [every distributor on whom tax is44imposed under this article and] every person who sells adult-use canna- 45 bis products at retail who fails to maintain or make available to the 46 commissioner the records required by this section is subject to a penal- 47 ty not to exceed five hundred dollars for each month or part thereof for 48 which the failure occurs. This penalty may not be imposed more than once 49 for failures for the same monthly period or part thereof. If the 50 commissioner determines that a failure to maintain or make available 51 records in any month was entirely due to reasonable cause and not to 52 willful neglect, the commissioner must remit the penalty for that month. 53 § 5. This act shall take effect immediately.