NY Tax L § 498 (2021)
2021 New York Laws TAX - Tax Article 20-D - Excise Tax on Sale of Opioids 498 - Imposition of Excise Tax.

§ 498. Imposition of excise tax. (a) There is hereby imposed an excise tax on the first sale of every opioid unit in the state at the following rates:  (1)  a quarter of a cent per morphine milligram equivalent where the wholesale acquisition cost is less than fifty cents, or (2) one  and one-half  cents  per  morphine  milligram equivalent where the wholesale acquisition cost is fifty cents or more; except that such tax shall  not apply  when  such  first  sale  is  to  any program operated pursuant to article forty of the public health law and  article  thirty-two  of  the mental  hygiene  law.  The  tax imposed by this article shall be charged against and paid by the registrant making such  first  sale,  and  shall accrue  at  the  time  of  such  sale.  For  the  purpose  of the proper administration of this article and to prevent evasion of the tax  hereby imposed,  it  shall  be presumed that any sale of an opioid unit in this state by a registrant is the first sale of such in the state  until  the contrary  is established, and the burden of proving that any sale is not the first sale in the state shall be upon the registrant.  (b) Every registrant liable for the tax imposed by this article  shall file  with  the  commissioner  a return on forms to be prescribed by the commissioner  showing  the  total  morphine  milligram  equivalent   and wholesale acquisition costs of such opioid units that are subject to the tax  imposed  by  this  article, the amount of tax due thereon, and such further information as the commissioner may require. Such returns  shall be  filed  for  quarterly periods ending on the last day of March, June, September and December of each year. Each return shall be  filed  within twenty  days  after the end of such quarterly period and shall cover all opioid sales in the state made in the prior  quarter,  except  that  the first  return required to be filed pursuant to this section shall be due on January twentieth, two thousand twenty, and shall  cover  all  opioid sales occurring in the period between the effective date of this article and  December  thirty-first,  two  thousand  nineteen.  Every registrant 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 for the period covered by such return. If a return  is  not  filed  when due,  the tax shall be due the day on which the return is required to be filed. The commissioner  may  require  that  the  returns  and  payments required by this section be filed or paid electronically.  (c)  Where a sale of an opioid unit by a registrant has been cancelled by the purchaser and tax thereon was previously paid by the  registrant, the  commissioner  shall  allow  to the registrant a refund or credit of such tax on a return for a  later  period  subject  to  the  limitations period  for  claiming  a  refund  or credit as prescribed by section one thousand eighty-seven of this chapter. Where a registrant proves that an opioid unit for which it previously paid a tax has been distributed  out of the state for use or consumption outside this state, the commissioner shall  allow  a  credit to the registrant for tax paid on a return for a later period subject to the limitations period for claiming a credit  as prescribed by section one thousand eighty-seven of this chapter.  (d)  All  sales  slips,  invoices,  receipts,  or  other statements or memoranda of  sale  from  any  sale  or  purchase  of  opioid  units  by registrants  must  be  retained  for a period of six years after the due date of the  return  to  which  they  relate,  unless  the  commissioner provides  for  a  different retention period by rule or regulation. Such records must be sufficient to determine the number of units  transferred along  with  the morphine milligram equivalent of the units transferred, and otherwise be suitable to determine the correct amount  of  tax  due. Such  records  must  also  record  either (1) the address from which the units are shipped or delivered, along with  the  address  to  which  the units  are  shipped  or  delivered,  or  (2)  the  place at which actual  physical possession of the units is transferred. Such records  shall  be produced upon demand by the commissioner.  (e) 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 article and had expressly referred to the tax  imposed by this article, except to the extent that any provision of such article twenty-seven is either inconsistent  with  a  provision  of this article or is not relevant to this article.  (f) The commissioners of education and health shall cooperate with the commissioner  in  administering  this  tax,  including  sharing with the commissioner pertinent information about registrants upon the request of the commissioner.  (g) Each registrant shall provide a report to the department of health detailing all opioids sold by such registrant in the state of New  York. Such report shall include:  (i)  the  registrant's  name,  address,  phone  number,  federal  Drug Enforcement  Agency  (DEA)  registration  number,  education  department registration  number,  and controlled substance license number issued by the department of health, if applicable;  (ii) the name, address and DEA registration number of  the  entity  to whom the opioid was sold;  (iii) the date of the sale of the opioid;  (iv) the gross receipt total, in dollars, for each opioid sold;  (v) the name and National Drug Code of the opioid sold;  (vi)  the number of containers and the strength and metric quantity of controlled substance in each container of the opioid sold;  (vii) the total number of morphine milligram equivalents sold; and  (viii) any other elements as deemed necessary by the  commissioner  of health.   Such information shall be reported annually in such form as defined by the commissioner of health and shall not be subject to the provisions of section four hundred ninety-nine of this article.