N.Y. Tax Law § 490: Excise tax on medical cannabis

* § 490. Excise tax on medical cannabis. 1. (a) For purposes of this

article, the terms "medical cannabis," "registered organization,"

"certified patient," and "designated caregiver" shall have the same

definitions as in section three of the cannabis law.

(b) As used in this section, where not otherwise specifically defined

and unless a different meaning is clearly required "gross receipt" means

the amount received in or by reason of any sale, conditional or

otherwise, of medical cannabis or in or by reason of the furnishing of

medical cannabis from the sale of medical cannabis provided by a

registered organization to a certified patient or designated caregiver.

Gross receipt is expressed in money, whether paid in cash, credit or

property of any kind or nature, and shall be determined without any

deduction therefrom on account of the cost of the service sold or the

cost of materials, labor or services used or other costs, interest or

discount paid, or any other expenses whatsoever. "Amount received" for

the purpose of the definition of gross receipt, as the term gross

receipt is used throughout this article, means the amount charged for

the provision of medical cannabis.

2. There is hereby imposed an excise tax on the gross receipts from

the sale of medical cannabis by a registered organization to a certified

patient or designated caregiver, to be paid by the registered

organization, at the rate of three and fifteen-hundredths percent. The

tax imposed by this article shall be charged against and be paid by the

registered organization and shall not be added as a separate charge or

line item on any sales slip, invoice, receipt or other statement or

memorandum of the price given to the retail customer.

3. The commissioner may make, adopt and amend rules, regulations,

procedures and forms necessary for the proper administration of this

article.

4. Every registered organization that makes sales of medical cannabis

subject to the tax imposed by this article shall, on or before the

twentieth date of each month, file with the commissioner a return on

forms to be prescribed by the commissioner, showing its receipts from

the retail sale of medical cannabis during the preceding calendar month

and the amount of tax due thereon. Such returns shall contain such

further information as the commissioner may require. Every registered

organization required to file a return under this section shall, at the

time of filing such return, pay to the commissioner the total amount of

tax due on its retail sales of medical cannabis for the period covered

by such return. If a return is not filed when due, the tax shall be due

on the day on which the return is required to be filed.

5. Whenever the commissioner shall determine that any moneys received

under the provisions of this article were paid in error, he may cause

the same to be refunded, with interest, in accordance with such rules

and regulations as he may prescribe, except that no interest shall be

allowed or paid if the amount thereof would be less than one dollar.

Such interest shall be at the overpayment rate set by the commissioner

pursuant to subdivision twenty-sixth of section one hundred seventy-one

of this chapter, or if no rate is set, at the rate of six percent per

annum, from the date when the tax, penalty or interest to be refunded

was paid to a date preceding the date of the refund check by not more

than thirty days. Provided, however, that for the purposes of this

subdivision, any tax paid before the last day prescribed for its payment

shall be deemed to have been paid on such last day. Such moneys received

under the provisions of this article which the commissioner shall

determine were paid in error, may be refunded out of funds in the

custody of the comptroller to the credit of such taxes provided an

application therefor is filed with the commissioner within two years

from the time the erroneous payment was made.

6. The provisions of article twenty-seven of this chapter shall apply

to the tax imposed by this article in the same manner and with the same

force and effect as if the language of such article had been

incorporated in full into this section and had expressly referred to the

tax imposed by this article, except to the extent that any provision of

such article is either inconsistent with a provision of this article or

is not relevant to this article.

7. All taxes, interest and penalties collected or received by the

commissioner under this article shall be deposited and disposed of

pursuant to the provisions of section one hundred seventy-one-a of this

chapter, provided that an amount equal to one hundred percent collected

under this article less any amount determined by the commissioner to be

reserved by the comptroller for refunds or reimbursements shall be paid

by the comptroller to the credit of the medical cannabis trust fund

established by section eighty-nine-h of the state finance law.

8. A registered organization that dispenses medical cannabis shall

provide to the department information on where the medical cannabis was

dispensed and where the medical cannabis was manufactured. A registered

organization that obtains cannabis from another registered organization

shall obtain from such registered organization information on where the

medical cannabis was manufactured.

* NB Repealed July 5, 2028