Excise tax on medical cannabis

Registered organizations must pay excise tax on their gross receipts from medical cannabis sold or furnished to certified patients or designated caregivers.

Effective for sales on and after June 1, 2024, the tax rate is 3.15% (0.0315). For the tax rate on sales prior to June 1, 2024, see TSB-M-16(1)M, Tax Requirements for New York Medical Marijuana Registered Organizations.

The tax is imposed directly on the registered organization. The tax cannot be added as a separate charge or line item on a sales slip, invoice, receipt or other statement or memorandum of the price given to the retail customer.

Gross receipt means the amount charged by a registered organization for the sale or furnishing of medical cannabis to a certified patient or designated caregiver, without any deduction for:

• the cost of materials, labor, or services;
• other costs, interest, or discount paid; or
• any other expenses.

For information about the medical cannabis program, including how to become a registered organization, certified patient, or designated caregiver, see Office of Cannabis Management.

Filing returns and paying the tax

Registered organizations must use the Tax Department’s Medical Cannabis Web File application to:

• file monthly excise tax returns showing the total amount of tax due;
• file and pay the tax due no later than the 20^th day of the month following the month in which the medical cannabis was sold or furnished.

Registered organizations must file a return even if there are no sales during the month.

To file:

1. Log in to your Business Online Services account (or create one).
2. Select the ≡ Services menu in the upper-left corner of your Account Summary homepage.
3. Select Other taxes, then choose Medical cannabis web file  from the expanded menu.

If the due date falls on a Saturday, Sunday, or legal holiday, the return is due on the next business day.

Report gross receipts by the county where the medical cannabis was manufactured and the county where it was dispensed. For medical cannabis delivered to a certified patient or designated caregiver’s home, report the gross receipts from these sales by the county where the dispensing facility is located.

Penalty and interest

Registered organizations must file returns and pay the tax due by the due date to avoid penalty and interest. Use the Penalty and Interest Calculator to calculate the late filing and late payment penalties and interest due.

Recordkeeping

In addition to any recordkeeping requirements in the Cannabis Law or regulations, registered organizations must maintain a record of gross receipts subject to tax for each transaction. These records must identify:

• the date of the transaction,
• the county where the medical cannabis was manufactured,
• the county where the medical cannabis was dispensed, and
• the amount charged for the medical cannabis.

Registered organizations must keep all records for a minimum of three years after the due date of the return they relate to or the date the return was filed, whichever is later. Records must be available to the Tax Department upon request.

Resources

• TSB-M-16(1)M, Tax Requirements for New York Medical Marijuana Registered Organizations
• Office of Cannabis Management
• Businesses

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