N.Y. Tax Law § 496: Records to be kept; penalties

§ 496. Records to be kept; penalties. (a) Records to be kept. Every

distributor on whom tax is imposed under this article and 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, such items as the total THC content of

the adult-use cannabis products sold to or produced by such person;

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.

(b) Penalties. In addition to any other penalty provided in this

article or otherwise imposed by law, every distributor on whom tax is

imposed under this article and 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 five hundred dollars for each month or part

thereof for which the failure occurs. This penalty may not be imposed

more than once for failures for the same monthly period or part thereof.

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.

(c) The failure of any person who sells adult-use cannabis products at

retail, except a person who possesses a valid registered organization

adult-use cultivator processor distributor retail dispensary license or

microbusiness license issued by the office of cannabis management, to

comply with subdivision (a) of this section for the adult-use cannabis

products in such person's possession shall be presumptive evidence that

the tax thereon has not been paid, and that such person shall be liable

for the tax thereon unless evidence of such invoice, payment or

assumption shall later be produced.

(d) If books and records are not provided or are determined to be

insufficient, the amount of tax due shall be determined by the

commissioner from such information as may be available. In the absence

of evidence of the wholesale price for the tax imposed by subdivision

(a) of section four hundred ninety-three of this article, the tax may be

determined based on the retail price of such adult-use cannabis

products.