BILL NUMBER: S9359
SPONSOR: COONEY
 
TITLE OF BILL:
An act to amend the tax law, in relation to authorizing distributors of
cannabis products to file annual returns electronically
 
SUMMARY OF SPECIFIC PROVISIONS:
Section 1: Subdivision (a) of section 495 of the tax law is amended.
Section 2: Establishes the effective date.
 
JUSTIFICATION:
Under current law, the cannabis excise tax is paid quarterly by cannabis
cultivators and processors to the NYS Department of Taxation and
Finance. This excise tax payment schedule creates situations where prod-
uct producers and processors often owe taxes before the product is sold
to consumers. This legislation changes the tax collection payment sched-
ule by allowing the payment annually rather than quarterly, similar to
what is now allowed for the alcohol excise tax.
The slow opening of cannabis dispensaries, due to multiple factors, has
created a backlog of products on processors shelves, which have yet to
be sent or sold to retailers, yet the tax is still owed. Another factor
creating stress on the processor's ability to pay the excise tax, is
that some retail dispensaries are delinquent in paying for products they
have received . There is a prompt payment provision in the cannabis law,
but, due to many factors the provision is not being enforced. By allow-
ing the tax to be collected annually it will allow flexibility in the
market as it matures and provides a financial lifeline to currently
struggling producers and processors.
 
PRIOR LEGISLATIVE HISTORY:
New bill
 
FISCAL IMPLICATIONS:
This legislation will have no annual fiscal implications. While the time
period of paying the cannabis excise tax may be adjusted, the tax will
still be paid in full.
 
EFFECTIVE DATE:
This act shall take effect immediately.

Statutes affected:
S9359: 495 tax law