Summary of 2024 sales and other tax type changes
A summary of 2024 legislative changes is provided below.
Division of Tax Appeals representation (Article 40)
Electronic filing and electronic payments mandate (Article 1)
Sales tax
- Requirements for vendors participating in the segregated accounts program (Article 28)
- Amending and filing sales and use tax, adult-use cannabis products tax, and wireless communications surcharge returns (Article 28)
- Exemption for transactions related to the Dodd-Frank Wall Street Reform and Consumer Protection Act (Article 28)
- Extension of the vending machine exemption for candy, fruit drinks, soft drinks, and bottled water (Article 28)
- Waterfront Commission Act (Article 28)
- Sales and use tax exemption for residential energy storage systems equipment (Article 28)
Other tax types
Tax on adult-use cannabis products
Excise tax on medical cannabis
Authorized combative sports tax
Tobacco products tax
Division of Tax Appeals representation (Article 40)
Effective September 27, 2024, the list of individuals who may appear on behalf of a taxpayer in an appeal before the Division of Tax Appeals has been expanded to include any person of the taxpayer’s choosing who is at least 18 years of age.
[Chapter 366 of the Laws of 2024; Tax Law § 2014]
Electronic filing and electronic payments mandate (Article 1)
The electronic filing and electronic payment mandates established in 2011 are extended to December 31, 2029.
Tax professionals - for more information, see Tax return preparer e-file mandate.
Businesses - for more information, see Electronic filing mandate for business taxpayers.
[Part F of Chapter 59 of the Laws of 2024; Tax Law § 29]
Requirements for vendors participating in the segregated accounts program (Article 28)
Provisions in the Tax Law authorizing the Tax Department to impose certain requirements on vendors participating in the segregated accounts program are extended through December 31, 2029.
For more information, see Establish a segregated bank account for sales taxes.
[Part G of Chapter 59 of the Laws of 2024; Tax Law §§ 1134(a)(4)(A) and 1137(e)(3)]
Amending and filing sales and use tax, adult-use cannabis products tax, and wireless communications surcharge returns (Article 28)
For filing periods beginning on or after December 1, 2024, any person required to collect tax under Tax Law Article 28 (Sales and Compensating Use Taxes) may, in certain situations, amend a previously filed return or file an original return after a notice of determination is issued.
In addition, any person who willfully files a return that contains false information to reduce or eliminate a liability will be subject to a penalty up to $1,000 per return in addition to any other penalty provided by law.
For more information, see TSB-M-24(2)S, (1)M, Amending and Filing Sales and Use Tax, Adult‑Use Cannabis Products Tax, and Wireless Communications Surcharge Returns.
[Part H of Chapter 59 of the Laws of 2024; Tax Law §§ 1136(d-1) and 1145(a)(8)]
Exemption for transactions related to the Dodd-Frank Wall Street Reform and Consumer Protection Act (Article 28)
The sales and use tax exemption for specific sales of tangible personal property or services between certain financial institutions and their subsidiaries is extended to June 30, 2025, or to June 30, 2028, if such sales are made pursuant to a binding contract entered into on or before June 30, 2025.
[Part I of Chapter 59 of the Laws of 2024; Tax Law § 1115(jj)]
Extension of the vending machine exemption for candy, fruit drinks, soft drinks, and bottled water (Article 28)
The exemption from sales and use tax for certain candy, fruit drinks, soft drinks, and bottled water sold from vending machines is extended to May 31, 2025.
For more information, see Tax Bulletin Food and Beverages Sold from Vending Machines (TB-ST-280).
[Part J of Chapter 59 of the Laws of 2024; Tax Law §§ 1105(a), 1105(d)(i)(3), and 1115(a)(1)]
Waterfront Commission Act (Article 28)
Effective June 30, 2024, the Waterfront Commission Act amends the exclusion from sales and use tax imposed on protective and detective services to include the New York Waterfront Commission.
[Part L of Chapter 58 of the Laws of 2024; Tax Law § 1105(c)(8)]
Sales and use tax exemption for residential energy storage systems equipment (Article 28)
Effective June 1, 2024, through May 31, 2026, receipts from retail sales and installation of residential energy storage systems equipment are exempt from state and local sales and use taxes.
In addition, receipts from the sale of electricity related to energy storage systems equipment may be exempt from state and local sales and use taxes under certain conditions.
For more information, see TSB-M-24(1)S, Sales and Use Tax Exemption for Residential Energy Storage Systems Equipment.
[Part PP of Chapter 58 of the Laws of 2024; Tax Law § 1115(ll)]
Changes to tax on adult-use cannabis products (Article 20-C)
Effective for sales on and after June 1, 2024, the total THC-based (potency) tax rates on adult-use cannabis products have been replaced with a tax rate of 9%. See Adult use cannabis products tax: Tax rates summary.
If adequate records are not provided to the Tax Department or if the records provided are deemed insufficient, the Department may determine the distributor tax due based on the retail price of the adult-use cannabis products distributed.
Effective December 1, 2024, the adult-use cannabis products tax will be administered by the Tax Department under the provisions of Tax Law Article 28 (Sales and Compensating Use Taxes). Prior to this date, the administrative provisions of Tax Law Article 27 (Corporate Tax Procedure and Administration) apply.
For more information, see Adult-use cannabis products tax and Subscribe to Adult-use cannabis to receive updates by email when new information is available on the Tax Department’s website.
[Part L of Chapter 59 of the Laws of 2024; Tax Law §§ 493(a), 496(d), and 496-b(a)]
Reduction in excise tax on medical cannabis (Article 20-B)
Effective June 1, 2024, the excise tax on gross receipts from medical cannabis sold or furnished by a registered organization to a certified patient or designated caregiver is 3.15% (0.0315).
For more information, see Excise tax on medical cannabis.
[Part T of Chapter 59 of the Laws of 2024; Tax Law § 490(2)]
Change in authorized combative sports tax rates on ticket sales (Article 19)
Effective December 1, 2024, the tax rate on gross receipts from ticket sales for kickboxing, single discipline martial arts, and mixed martial arts will be reduced from 8.5% to 3%.
For more information, see Authorized combative sports tax.
[Part RR of Chapter 56 of the Laws of 2024; Tax Law §452(2)(a)]
Simplified tax computation for little cigars (Article 20)
Effective August 1, 2024, the excise tax rate for each little cigar is 26.75 cents ($0.2675).
For more information, see Cigarette and tobacco products tax.
[Part Q of Chapter 59 of the Laws of 2024; Tax Law §§471-b and 471-c]