NY Tax L § 490 (2021)
2021 New York Laws TAX - Tax Article 20-B - Excise Tax on Medical Cannabis 490 - Excise Tax on Medical Cannabis.

* §  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 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 seven 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 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 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 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 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