Bill Text: NY S04831 | 2023-2024 | General Assembly | Amended
Bill Title: Relates to the amount of tax charged for the sale or transfer of adult-use cannabis products to a retail customer; makes related provisions.
Spectrum: Slight Partisan Bill (Democrat 3-1)
Status: (Introduced) 2024-02-27 - REPORTED AND COMMITTED TO FINANCE [S04831 Detail]
Download: New_York-2023-S04831-Amended.html
STATE OF NEW YORK ________________________________________________________________________ 4831--B 2023-2024 Regular Sessions IN SENATE February 15, 2023 ___________ Introduced by Sens. COONEY, COMRIE, RAMOS -- read twice and ordered printed, and when printed to be committed to the Committee on Budget and Revenue -- recommitted to the Committee on Budget and Revenue in accordance with Senate Rule 6, sec. 8 -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said commit- tee -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee AN ACT to amend the tax law, in relation to the imposition of taxes on the sale of cannabis The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Section 493 of the tax law, as added by chapter 92 of the 2 laws of 2021, is amended to read as follows: 3 § 493. Imposition of tax. (a) There is hereby imposed a tax on adult- 4 use cannabis products sold by a distributor to a person who sells 5 adult-use cannabis products at retail at the [following rates:6(1) cannabis flower at the rate of five-tenths of one cent per milli-7gram of the amount of total THC, as reflected on the product label;8(2) concentrated cannabis at the rate of eight-tenths of one cent per9milligram of the amount of total THC, as reflected on the product label;10and11(3) cannabis edible product at the rate of three cents per milligram12of the amount of total THC, as reflected on the product label. This tax13shall accrue at the time of such sale or transfer. Where] rate of: (1) 14 five percent of the amount charged for the sale or transfer of such 15 adult-use cannabis products to such retailer for tax years ending before 16 January first, two thousand twenty-eight; (2) seven percent of the 17 amount charged for the sale or transfer of such adult-use cannabis 18 products to such retailer for tax years beginning on or after January 19 first, two thousand twenty-eight and ending before January first two 20 thousand thirty-one; and (3) nine percent of the amount charged for the EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD08127-05-4S. 4831--B 2 1 sale or transfer of such adult-use cannabis products to such retailer 2 for tax years beginning on or after January first, two thousand thirty- 3 one; provided that where a person who distributes adult-use cannabis is 4 licensed under the cannabis law as a microbusiness or registered organ- 5 ization and such person sells adult-use cannabis products at retail, 6 such person shall be liable for the tax, and such tax shall accrue at 7 the time of the retail sale, and the amount subject to the tax imposed 8 by this subdivision shall be seventy-five percent of the amount charged 9 by such person for the sale or transfer of such products to a retail 10 customer. 11 (b) In addition to any other tax imposed by this chapter or other law, 12 there is hereby imposed a tax of nine percent of the amount charged for 13 the sale or transfer of adult-use cannabis products to a retail customer 14 by a person who sells adult-use cannabis products at retail. This tax is 15 imposed on the person who sells adult-use cannabis at retail and shall 16 accrue at the time of such sale or transfer. 17 (c) In addition to the taxes imposed by subdivisions (a) and (b) of 18 this section, there is hereby imposed a tax on the sale or transfer of 19 adult-use cannabis products to a retail customer by a person who sells 20 adult-use cannabis products at retail at the rate of four percent of the 21 amount charged by such person for such adult-use cannabis product, which 22 tax shall accrue at the time of such sale or transfer. The tax imposed 23 by this subdivision is imposed on a person who sells adult-use cannabis 24 products at retail, and shall be paid to the commissioner in trust for 25 and on account of a city having a population of a million or more, and 26 counties (other than counties wholly within such a city), towns, 27 villages, and cities with a population of less than a million in which a 28 retail dispensary is located. 29 (d) The taxes imposed by this section shall not apply to sales of 30 adult-use cannabis to a person holding a cannabis research license under 31 section thirty-nine of the cannabis law. 32 § 2. Subdivision (a) of section 496-b of the tax law, as added by 33 chapter 92 of the laws of 2021, is amended to read as follows: 34 (a) The provisions of part four of article [twenty-seven] twenty-eight 35 of this chapter shall apply to the taxes imposed by section four hundred 36 ninety-three of this article in the same manner and with the same force 37 and effect as if the language of such article had been incorporated in 38 full into this section and had expressly referred to the tax imposed by 39 this article, except to the extent that any provision of such article is 40 either inconsistent with a provision of this article or is not relevant 41 to this article. 42 § 3. This act shall take effect immediately; provided, however, that 43 section one of this act shall apply to sales of adult-use cannabis 44 products on or after June 1, 2024; and provided further, however, 45 section two of this act shall apply to sales of adult-use cannabis 46 products on or after December 1, 2024.