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 attorneys on the Cannabis Industry Team at Harris Beach will continue to share key information supporting regulatory and tax compliance for cannabis retailers and distributors.

This alert does not purport to be a substitute for advice of counsel on specific matters.

Harris Beach has offices throughout New York state, including Albany, Buffalo, Ithaca, New York City, Rochester, Saratoga Springs, Syracuse, Uniondale and White Plains, as well as Washington D.C., New Haven, Connecticut and Newark, New Jersey.