Bill Text: NY S04831 | 2023-2024 | General Assembly | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Relates to the amount of tax charged for the sale or transfer of adult-use cannabis products to a retail customer; makes related provisions.

Spectrum: Slight Partisan Bill (Democrat 3-1)

Status: (Introduced) 2024-02-27 - REPORTED AND COMMITTED TO FINANCE [S04831 Detail]

Download: New_York-2023-S04831-Amended.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                         4831--A

                               2023-2024 Regular Sessions

                    IN SENATE

                                    February 15, 2023
                                       ___________

        Introduced  by  Sens.  COONEY,  COMRIE,  RAMOS -- read twice and ordered
          printed, and when printed to be committed to the Committee  on  Budget
          and  Revenue  -- recommitted to the Committee on Budget and Revenue in
          accordance with Senate Rule 6, sec. 8 --  committee  discharged,  bill
          amended,  ordered reprinted as amended and recommitted to said commit-
          tee

        AN ACT to amend the tax law, in relation to the imposition of  taxes  on
          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  Subdivision (k) of section 492 of the tax law is REPEALED.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 on adult-
     5  use cannabis products sold by  a  distributor  to  a  person  who  sells
     6  adult-use cannabis products at retail at the following rates:
     7    (1)  For  tax years beginning before January first, two thousand twen-
     8  ty-five:
     9    (i) cannabis flower at the rate of five-tenths of one cent per  milli-
    10  gram of the amount of total THC, as reflected on the product label;
    11    [(2)]  (ii)  concentrated  cannabis at the rate of eight-tenths of one
    12  cent per milligram of the amount of total THC, as reflected on the prod-
    13  uct label; and
    14    [(3)] (iii) cannabis edible product at the rate  of  three  cents  per
    15  milligram of the amount of total THC, as reflected on the product label.
    16  This  tax  shall  accrue  at  the time of such sale or transfer. Where a
    17  person who distributes adult-use cannabis is licensed under the cannabis
    18  law as a microbusiness or registered organization, such person shall  be
    19  liable  for the tax, and such tax shall accrue at the time of the retail
    20  sale;

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD08127-03-4
        S. 4831--A                          2

     1    (2) For tax years beginning on January first, two thousand twenty-five
     2  and ending before January first, two thousand twenty-eight:
     3    five  percent  of  the  amount  charged  for  the sale or transfers of
     4  adult-use cannabis products to  a  licensed  retailer  from  a  licensed
     5  distributor;
     6    (3) For tax years beginning on January first, two thousand twenty-nine
     7  and ending before January first, two thousand thirty-two:
     8    seven  percent  of  the  amount  charged  for the sale or transfers of
     9  adult-use cannabis products to  a  licensed  retailer  from  a  licensed
    10  distributor;
    11    (4)  For  tax  years  beginning on January first, two thousand thirty-
    12  three and thereafter:
    13    nine percent of the amount  charged  for  the  sale  or  transfers  of
    14  adult-use  cannabis  products  to  a  licensed  retailer from a licensed
    15  distributor.
    16    (a-1) The tax imposed by subparagraphs two, three, and four of  subdi-
    17  vision  (a)  of  this section shall  accrue  at the time of such sale or
    18  transfer. Where a person who distributes adult-use cannabis is  licensed
    19  under  the  cannabis law  as  a microbusiness  or  registered  organiza-
    20  tion and such person sells adult-use cannabis products at  retail,  such
    21  person shall be liable for the tax, such tax shall accrue at the time of
    22  the  retail  sale,  and  the  amount  subject to the tax imposed by this
    23  subdivision shall be seventy-five percent of the amount charged by  such
    24  person for the sale or transfer of such products to a retail customer.
    25    (b) In addition to any other tax imposed by this chapter or other law,
    26  there  is hereby imposed a tax of nine percent of the amount charged for
    27  the sale or transfer of adult-use cannabis products to a retail customer
    28  by a person who sells adult-use cannabis products at retail. This tax is
    29  imposed on the person who sells adult-use cannabis at retail  and  shall
    30  accrue at the time of such sale or transfer.
    31    (c)  In  addition  to the taxes imposed by subdivisions (a) and (b) of
    32  this section, there is hereby imposed a tax on the sale or  transfer  of
    33  adult-use  cannabis  products to a retail customer by a person who sells
    34  adult-use cannabis products at retail at the rate of four percent of the
    35  amount charged by such person for such adult-use cannabis product, which
    36  tax shall accrue at the time of such sale or transfer. The  tax  imposed
    37  by  this subdivision is imposed on a person who sells adult-use cannabis
    38  products at retail, and shall be paid to the commissioner in  trust  for
    39  and  on  account of a city having a population of a million or more, and
    40  counties (other  than  counties  wholly  within  such  a  city),  towns,
    41  villages, and cities with a population of less than a million in which a
    42  retail dispensary is located.
    43    (d)  The  taxes  imposed  by  this section shall not apply to sales of
    44  adult-use cannabis to a person holding a cannabis research license under
    45  section thirty-nine of the cannabis law.
    46    §  3. Subdivision (a) of section 496-b of the tax  law,  as  added  by
    47  chapter 92 of the laws of 2021, is amended to read as follows:
    48    (a) The provisions of part four of article [twenty-seven] twenty-eight
    49  of this chapter shall apply to the taxes imposed by section four hundred
    50  ninety-three  of this article in the same manner and with the same force
    51  and effect as if the language of such article had been  incorporated  in
    52  full  into this section and had expressly referred to the tax imposed by
    53  this article, except to the extent that any provision of such article is
    54  either inconsistent with a provision of this article or is not  relevant
    55  to this article.
    56    § 4. This act shall take effect immediately.