2023 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.
** NB Effective until June 1, 2024
** 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.
* NB Effective June 1, 2024
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