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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 to adult-use cannabis products retailers. If you’re an adult-use cannabis products retailer, you must pay a retail excise tax on the adult-use cannabis products you sell or transfer to retail customers.

Before you begin distributing or selling adult-use cannabis products, you must register with the Tax Department. If you’re not a licensed distributor or retailer, you must first apply for an adult-use cannabis license with the New York State Office of Cannabis Management.

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 adult-use cannabis license with the Office of Cannabis Management before you register with the Tax Department and begin distributing or selling adult-use cannabis products.

Step 2: Register with the New York State Tax Department

The Tax Department’s Adult-Use Cannabis Registration application is here!

For information on how to register, see our Adult-Use Cannabis Registration application demo.

If you distribute adult-use cannabis products or make sales of adult-use cannabis products at retail, you must register with the Tax Department:

  • after receiving the adult-use cannabis license from the Office of Cannabis Management that allows you to distribute adult-use cannabis products or sell adult-use cannabis products at retail, and
  • before doing business.

To register, apply online for an Adult-Use Cannabis Certificate of Registration. The application fee is $600. If you have fixed and final New York State liabilities, you must resolve them before we can approve your application. You may contact the Tax Department to determine if you have any outstanding liabilities, or view them in your Online Services account. To pay any outstanding liabilities, see: Pay a bill or notice.

To apply:

  1. Log in to your Business Online Services account (or create one).
  2. Select the ≡ Services menu in the upper-left corner of your Account Summary homepage.
  3. Select Registrations and account updates, then select Business registrations from the expanded menu.

Once your application is approved, the Tax Department will email you instructions on how to print your Form MT-222.7, Adult-Use Cannabis Certificate of Registration.

Log in to register

Renewing your Adult-Use Cannabis Certificate of Registration

An Adult-Use Cannabis 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 adult-use cannabis products, 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 adult-use cannabis products distributor or an adult-use cannabis products 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: