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Adult-use cannabis products excise tax

If you’re an adult-use cannabis products distributor, you must pay an excise tax on your sales of adult-use cannabis products (AUC) to adult-use cannabis products retailers. If you’re an adult-use cannabis products retailer, you must pay a retail excise tax on the AUC you sell or transfer to retail customers.

Before you begin distributing or selling AUC, you must register with the Tax Department. If you’re not a licensed distributor or retailer, you must first apply for an AUC license with the New York State Office of Cannabis Management (OCM).

Note: Please be advised that no adult-use retail licenses have been issued and, therefore, there are currently no authorized retail sales of adult-use cannabis products.

Licensing, registration, and renewal

Step 1: Apply for a license with the Office of Cannabis Management

You must apply for—and receive—an AUC license with OCM before you register with the Tax Department and begin distributing or selling AUC.

Step 2: Register with the New York State Tax Department

The Tax Department's Adult-Use Cannabis Registration application is not yet available. Check back soon, or subscribe to Adult-use cannabis emails to receive a notification when it becomes available.

If you will sell AUC subject to the AUC excise tax, you must register with the Tax Department:

  • after receiving your final adult-use cannabis license from OCM, and
  • before doing business.

The application fee for an AUC Certificate of Registration is $600.

An AUC Certificate of Registration is valid until the date printed on it, unless it has been suspended or revoked earlier. You must renew your registration prior to the printed expiration date. The renewal fee is $600.

Step 3: Determine if you need to register for a sales tax Certificate of Authority

If you sell any tangible personal property anywhere in New York State, you must register with the Tax Department and obtain a Certificate of Authority, collect tax, and report these sales as instructed on your sales tax returns. Sales of products to your customers, including, but not limited to:

  • lighters
  • rolling papers, and
  • pipes

are sales of tangible personal property subject to sales tax throughout New York State. For more information, see Tax Bulletin Do I Need to Register for Sales Tax? (TB-ST-175) and Tax Bulletin How to Register for New York State Sales Tax (TB-ST-360).

Tax rates

The excise tax is imposed at the following rates:

If you make retail sales of AUC, a retail excise tax of 13% on the amount charged for the sale or transfer is imposed.

Filing returns and paying tax

If you are an AUC distributor or an AUC retailer, you must:

  • file quarterly tax returns showing the total amount of tax due for the quarters ending May, August, November, and February;
  • file and pay the tax due no later than the 20th day of the month following the end of each quarter; and
  • file a return even if there are no sales during the quarter.
Reporting periods and due dates
Quarterly period Filing due date
March 1–May 31 June 20
June 1–August 31 September 20
September 1–November 30 December 20
December 1–February 28 (29 if leap year) March 20

If the due date falls on a Saturday, Sunday, or legal holiday, the return is due on the next business day.

Information

Updated: