BILL NUMBER: S1017
SPONSOR: COONEY
 
TITLE OF BILL:
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
 
SUMMARY OF SPECIFIC PROVISIONS:
Section 1: Paragraph E of subdivision (a) of section 1115 of the tax law
is amended. This paragraph exempts sales tax on tangible personal prop-
erty which is used for the production for sale of tangible personal
property by farming or commercial horse boarding.
Section 2: Establishes the effective date.
 
JUSTIFICATION:
Currently, farming and commercial horse boarding operations are allowed
exemptions from certain sales and use taxes when the tangible personal
property is used or consumed predominantly in the production of farming
products. The current law also includes the exemption of paying sales
taxes on motor vehicles that are used predominantly on the farm.
This legislation seeks to clarify that cannabis cultivation is a farming
activity that qualifies for the same sales and use tax exemptions.
 
PRIOR LEGISLATIVE HISTORY:
2021-22: S.8049
 
FISCAL IMPLICATIONS:
To be determined.
 
EFFECTIVE DATE:
This act shall take effect immediately.

Statutes affected:
S1017: 1115 tax law