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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.
You must apply for—and receive—an AUC license with OCM before you register with the Tax Department and begin distributing or selling AUC.
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:
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.
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:
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).
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.
If you are an AUC distributor or an AUC retailer, you must:
|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.
The taxes imposed on AUC do not apply to sales to a person holding a cannabis research license under the Cannabis Law.
A cannabis research license permits a licensee to produce, process, purchase, and/or possess cannabis for the following limited research purposes:
You must maintain complete and accurate records containing all the information you need to properly prepare your AUC tax returns and to verify their accuracy if you are audited by the Tax Department. This includes, but is not limited to:
You must retain all records for three years after the due date of the return they relate to or the date you file the return, whichever is later.
If you’re required to obtain a Certificate of Registration and do not, you will be subject to a penalty of $500 for each month, or part of a month, during which you possess AUC without a certificate, up to $10,000.
Every AUC distributor and AUC retailer who fails to maintain or make available required records is subject to a penalty up to $500 for each month or part of a month in which the failure occurs.
If you’re an AUC distributor or an AUC retailer who is required to obtain a Certificate of Registration, and who is determined to have possessed or sold illicit cannabis, your Certificate of Registration will be revoked for:
Any person knowingly in possession of or having control over illicit cannabis, after notice and an opportunity for a hearing, is liable for a civil penalty of not less than:
The penalty for a first violation cannot exceed:
For a second and subsequent violation occurring within three years following a prior violation, any person will be liable for a civil penalty of not less than:
The penalty for a second or subsequent violation cannot exceed:
Adult-use cannabis products or adult-use cannabis means cannabis, concentrated cannabis, and cannabis-infused products for use by a person 21 years of age or older. It does not include medical cannabis or cannabinoid hemp product.
Adult-use cannabis products distributor means any person who is licensed by the Office of Cannabis Management to distribute and sell adult-use cannabis products to a person who sells such products at retail.
Cannabis edible product means a product containing either Cannabis or concentrated cannabis and other ingredients, intended for use or consumption through ingestion, including sublingual or oral absorption.
Cannabis flower means the flower of a plant of the genus Cannabis that has been harvested, dried and cured but has not undergone any processing whereby the plant material is transformed into a concentrate, including but not limited to, concentrated cannabis, or into an edible or topical product containing cannabis or concentrated cannabis and other ingredients. Cannabis flower excludes leaves and stem.
Concentrated cannabis means the separated resin, whether crude or purified, obtained from cannabis; or a material, preparation, mixture, compound or other substance which contains more than three percent by weight or by volume of total THC.
Illicit cannabis means and includes cannabis flower, concentrated cannabis, cannabis edible product, and cannabis plant on which any tax required to have been paid has not been paid. Illicit cannabis does not include any cannabis lawfully possessed.
Person means every individual, partnership, limited liability company (LLC), society, association, joint stock company, corporation, estate, receiver, trustee, assignee, referee, and any other person acting in a fiduciary or representative capacity, whether appointed by a court or otherwise, and any combination of the foregoing.
Sale means any transfer of title, possession, or both, exchange or barter, rental, lease or license to use or consume, conditional or otherwise, in any manner or by any means whatsoever for a consideration or any agreement therefor.
THC means Delta-9-tetrahydrocannabinol; Delta-8-tetrahydrocannabinol; Delta-10-tetrahydrocannabinol; and the optical isomer of such substances.
No. You must have a valid license from OCM before you can apply.
You must register as an AUC distributor if you sell or transfer AUC to an AUC retailer.
You must register as an AUC retailer if you sell AUC to an AUC consumer.
You must register as both an AUC distributor and retailer if you sell or transfer AUC to an AUC retailer and sell AUC to an AUC consumer.
You must register for the AUC tax and file returns with the Tax Department if you are:
If you plan to sell taxable tangible personal property or provide taxable services, you must apply for your certificate at least 20 days before beginning business.
No. Tax professionals cannot apply for an AUC Certificate of Registration on behalf of their clients.
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