The State of New York has recently proposed a new tax law that increases the retail sales tax on cannabis products. This law, was introduced State Senator Jeremy A. Cooney and State Assemblymember Crystal Peoples-Stokes.
It's going to affect cannabis enthusiasts the most. Here's what you need to know:
Right now, there is a tax on certain cannabis products that are sold by distributors to retailers, and there is also a tax on the sale of cannabis products to retail customers by retailers. This proposed law would increase the tax rate on the sale of cannabis products to retail customers from 9% to 16%.
Additionally, the law would require anyone who sells cannabis products at retail to register with the state and pay a fee. These retailers would also need to keep accurate records of their sales, and failure to do so could result in a penalty.
Overall, this law is aimed at regulating the sale and distribution of cannabis products in New York state and ensuring that the appropriate taxes are being collected. It is part of a larger effort to legalize and regulate cannabis in the state, and it could have a significant impact on the cannabis industry if it is passed.
If you want some more details read on:
Imposition of Tax:
The new law imposes a tax of 16% (up from 9%) on the sale or transfer of adult-use cannabis products to a retail customer by a person who sells adult-use cannabis products at retail.
In addition, there is also a tax of 4% on the sale or transfer of adult-use cannabis products to a retail customer by a person who sells adult-use cannabis products at retail. This tax is imposed on a person who sells adult-use cannabis products at retail and is paid to the commissioner in trust for and on account of a city having a population of a million or more, and counties (other than counties wholly within such a city), towns, villages, and cities with a population of less than a million in which a retail dispensary is located.
The taxes imposed by this section shall not apply to sales of adult-use cannabis to a person holding a cannabis research license under section thirty-nine of the cannabis law.
Registration and Records:
Every person who sells adult-use cannabis products at retail must file with the commissioner a properly completed application for a certificate of registration before engaging in business. An application for a certificate of registration must be submitted electronically, on a form prescribed by the commissioner, and must be accompanied by a non-refundable application fee of $600
Every person who sells adult-use cannabis products at retail shall maintain complete and accurate records in such form as the commissioner may require including, but not limited to, complete records of every retail sale of adult-use cannabis, and any other record or information required by the commissioner. Such records must be preserved for a period of three years after the filing of the return to which such records relate and must be provided to the commissioner upon request.
Every person who sells adult-use cannabis products at retail who fails to maintain or make available to the commissioner the records required by this section is subject to a penalty not to exceed $500 for each month or part thereof for which the failure occurs.
If the commissioner determines that a failure to maintain or make available records in any month was entirely due to reasonable cause and not to willful neglect, the commissioner must remit the penalty for that month.
It's important to note that this law is specific to the State of New York and may not apply in other states. As with any new law, it's important to stay informed and comply with all regulations to avoid penalties and maintain compliance.
You can see the bill here.