Bill Text: NY S03141 | 2025-2026 | General Assembly | Introduced

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Bill Title: Exempts certain property and services used in the cultivation of cannabis for adult-use from sales and compensating use taxes.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Introduced) 2025-01-23 - REFERRED TO BUDGET AND REVENUE [S03141 Detail]

Download: New_York-2025-S03141-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          3141

                               2025-2026 Regular Sessions

                    IN SENATE

                                    January 23, 2025
                                       ___________

        Introduced  by  Sens.  COONEY, BAILEY -- read twice and ordered printed,
          and when printed to be committed to the Committee on Budget and Reven-
          ue

        AN ACT to amend the tax law, in relation to exempting  certain  property
          and  services  used  in the cultivation of cannabis for adult-use from
          sales and compensating use taxes

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:

     1    Section  1.  Paragraph 6 of subdivision (a) of section 1115 of the tax
     2  law, as amended by section 5 of part B of chapter  63  of  the  laws  of
     3  2000, is amended to read as follows:
     4    (6)  (A)  Tangible personal property, whether or not incorporated in a
     5  building or structure, for use or consumption predominantly [either]  in
     6  the  production  for sale of tangible personal property by farming [or],
     7  in a commercial horse boarding operation, or [in  both]  in  the  culti-
     8  vation  of  cannabis  for  adult-use pursuant to an adult-use cultivator
     9  license, an adult-use cooperative license, or  a  microbusiness  license
    10  pursuant to article four of the cannabis law.
    11    (B)  With  respect to the exemption of motor vehicles under this para-
    12  graph, (i) use of a motor vehicle [either] in the  production  phase  of
    13  farming [or], in a commercial horse boarding operation, or [in both,] in
    14  the  cultivation  of  cannabis  for  adult-use  pursuant to an adult-use
    15  cultivator license, an adult-use cooperative license, or a microbusiness
    16  license pursuant to article four of the cannabis law shall be defined as
    17  any use of the motor vehicle on property [either] farmed [or], used in a
    18  commercial horse boarding operation, or [both] used in  the  cultivation
    19  of  cannabis  for adult-use pursuant to an adult-use cultivator license,
    20  an adult-use cooperative license, or a microbusiness license pursuant to
    21  article four of the cannabis law, by the motor vehicle purchaser or user
    22  or in direct and uninterrupted trips between properties farmed  or  used
    23  in  such  operation[,  or  both,]  or  cultivation  by the motor vehicle

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD00457-01-5
        S. 3141                             2

     1  purchaser or user, and (ii) "predominantly" shall mean  that  more  than
     2  fifty  percent  of  the  motor vehicle's use is either in the production
     3  phase of farming [or], in a commercial horse boarding operation,  or  in
     4  [both]  the  cultivation of cannabis for adult-use pursuant to an adult-
     5  use cultivator license, an adult-use cooperative license,  or  a  micro-
     6  business  license  pursuant  to  article  four  of the cannabis law. The
     7  percentage of such vehicle's use [either] in  the  production  phase  of
     8  farming [or], in a commercial horse boarding operation, or in [both] the
     9  cultivation  of cannabis for adult-use pursuant to an adult-use cultiva-
    10  tor license,  an  adult-use  cooperative  license,  or  a  microbusiness
    11  license  pursuant  to  article four of the cannabis law, may be computed
    12  either on the basis of mileage or hours of use, at the discretion of the
    13  motor vehicle purchaser or user. A person may purchase a  motor  vehicle
    14  qualifying  for  exemption  under  this paragraph without payment of tax
    15  imposed by section eleven hundred five or eleven  hundred  ten  of  this
    16  article  by furnishing the vendor a properly completed exemption certif-
    17  icate promulgated by the commissioner; and such purchaser  may  register
    18  such  vehicle  or apply for a certificate of title for such vehicle with
    19  the commissioner of motor vehicles or a county clerk, without payment of
    20  such taxes, by furnishing such a properly completed certificate to  such
    21  commissioner or clerk.
    22    § 2.  This act shall take effect immediately.