Excise tax on medical cannabis
New York State imposes an excise tax on medical cannabis.
The excise tax on medical cannabis is a 7% tax on the gross receipts from medical cannabis sold or furnished by a registered organization to a certified patient or designated caregiver. The tax is imposed on the registered organization, which must pay it to the Tax Department. The tax may not be added as a separate charge or line item on a sales slip, invoice, receipt or other statement or memorandum of the price given to the retail customer.
Gross receipt means the amount charged by a registered organization for the sale or furnishing of medical cannabis to a certified patient or designated caregiver, without any deduction for:
- the cost of materials, labor, or services;
- other costs, interest, or discount paid; or
- any other expenses.
For information on the medical marijuana program, which will be transitioning to the medical cannabis program under the new Office of Cannabis Management (OCM), visit New York State Medical Cannabis.
Filing returns and paying the tax
Registered organizations must use the Tax Department’s Medical Cannabis Web File application to file their excise tax return on a monthly basis. Returns must be filed and the tax paid no later than the 20th day of the month following the month in which the medical cannabis was sold or furnished. For example, a November return is due on December 20th. A return must be filed even if the organization had no sales during the month. The registered organization must have a Business Online Services account to file tax returns.
- Log in to your Business Online Services account.
- Select the ≡ Services menu in the upper left-hand corner of your Account Summary homepage.
- Select Other taxes, then select Medical cannabis web file from the expanded menu.
If the due date falls on a Saturday, Sunday, or legal holiday, the return is due on the next business day.
When completing the return, gross receipts must be reported by the county where the medical cannabis was manufactured and the county where it was dispensed. For medical cannabis that was delivered to a certified patient or designated caregiver’s home, gross receipts must be attributed to the county where the dispensing facility is located.
Penalty and interest
Registered organizations must file their returns and pay the tax due by the due date to avoid penalty and interest. Organizations that file or pay late can compute the penalty and interest due using our Penalty and Interest Calculator.
In addition to any recordkeeping requirements in the Cannabis Law or regulations, registered organizations must maintain a record of gross receipts subject to tax for each transaction. These records must identify:
- the date of the transaction,
- the county where the medical cannabis was manufactured,
- the county where the medical cannabis was dispensed, and
- the amount charged for the medical cannabis.
Registered organizations must keep all records for a minimum of three years from the due date of the return to which those records relate, or the date the return is filed, if later. They must make the records available to the Tax Department upon request.
Registered organizations are also subject to other state and federal tax requirements. For more information on New York State tax requirements, see:
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