BILL NUMBER: S8091
SPONSOR: COONEY
 
TITLE OF BILL:
An act to amend the tax law, in relation to the timeframe of distribu-
tors of cannabis products to file tax returns
 
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 filing of tax forms up to fifty days after each
quarterly period. 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.
 
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:
S8091: 495 tax law