The New York State Department of Taxation and Finance (the “Department”) has created a new webpage addressing the adult-use cannabis product taxation structure, including how to register with the Department, the Department's renewal requirements, the tax rate structure and how to file a return. This publication may signal a shift in regulatory oversight of the cannabis industry tax structure from the Office of Cannabis Management to the state's tax department. In sum, the webpage sets forth the following:
- Adult-use cannabis products distributors must pay an excise tax on sales of these products to adult-use cannabis products retailers.
- Adult-use cannabis products retailers must pay a retail excise tax on adult-use cannabis products sold to customers.
- Registration with the Department is necessary before beginning to distribute or sell Adult-Use Cannabis products.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
