New York S 4831: Relates to the imposition of taxes on the sale of cannabis

Bill Text

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-
7 gram 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 per
9 milligram of the amount of total THC, as reflected on the product label;
10 and
11 (3) cannabis edible product at the rate of three cents per milligram
12 of the amount of total THC, as reflected on the product label. This tax
13 ] shall 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 (underscored) is new; matter in bracketsitalics
[ ] is old law to be omitted.
LBD08127-05-4

S. 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 a person who distributes adult-use cannabis isone; provided that where
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 article [ ] part four of 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 eithe