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A05496 Summary:

BILL NOA05496A
 
SAME ASSAME AS S08091
 
SPONSORLupardo
 
COSPNSRStirpe, Peoples-Stokes
 
MLTSPNSR
 
Amd §495, Tax L
 
Relates to the timeframe for distributors of cannabis products to file tax returns.
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A05496 Actions:

BILL NOA05496A
 
02/14/2025referred to ways and means
05/12/2025amend (t) and recommit to ways and means
05/12/2025print number 5496a
06/16/2025reported referred to rules
06/16/2025reported
06/16/2025rules report cal.791
06/16/2025ordered to third reading rules cal.791
06/16/2025substituted by s8091
 S08091 AMEND= COONEY
 05/15/2025REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
 06/04/2025COMMITTEE DISCHARGED AND COMMITTED TO RULES
 06/04/2025ORDERED TO THIRD READING CAL.1567
 06/11/2025PASSED SENATE
 06/11/2025DELIVERED TO ASSEMBLY
 06/11/2025referred to ways and means
 06/16/2025substituted for a5496a
 06/16/2025ordered to third reading rules cal.791
 06/17/2025passed assembly
 06/17/2025returned to senate
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A05496 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A5496A
 
SPONSOR: Lupardo
  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   PURPOSE OR GENERAL IDEA OF BILL: The purpose of this legislation is to allow the cannabis excise tax to be paid on a more flexible timeframe the better represents the structure of the current Industry.   SUMMARY OF 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 option for the payment on or before the fiftieth day after each quarterly tax 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. 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 on a more flexible schedule it will allow flexibility in the market as it matures and provides a financial life- line to currently struggling producers and processors.   PRIOR LEGISLATIVE HISTORY: Formerly A-10196 of 2023-24, Vetoed   FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS: There are no fiscal implications for State or Local Government as al taxes owed will still be collected.   EFFECTIVE DATE: This act shall take effect immediately.
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A05496 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                         5496--A
 
                               2025-2026 Regular Sessions
 
                   IN ASSEMBLY
 
                                    February 14, 2025
                                       ___________
 
        Introduced  by M. of A. LUPARDO, STIRPE, PEOPLES-STOKES -- read once and
          referred to the Committee on Ways and Means --  committee  discharged,
          bill  amended,  ordered  reprinted  as amended and recommitted to said
          committee
 
        AN ACT to amend the tax law, in relation to the timeframe  of  distribu-
          tors of cannabis products to file tax returns

          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 
     1    Section 1.  Subdivision (a) of section 495 of the tax law, as added by
     2  chapter 92 of the laws of 2021, is amended to read as follows:
     3    (a) Every person on whom tax is imposed under this article  shall,  on
     4  or  before  the  [twentieth] fiftieth day [of the month following] after
     5  each quarterly period ending on the last day of February,  May,  August,
     6  and  November, respectively, file electronically with the commissioner a
     7  return on forms to be prescribed by the commissioner, showing the  total
     8  amount  of  tax  due  in such quarterly period, and including such other
     9  information as the commissioner may require.
    10    § 2.  This act shall take effect immediately.
 
 
 
 

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD01105-04-5
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