NYS Tax Department (Cannabis Sales and Excise Taxes)
New York requires all cannabis retailers to comply with state tax laws for sales tax and cannabis excise tax. These taxes apply to every sale and must align exactly with your POS, inventory, and reported filings.
The Tax Department treats mismatches, late filings, or missing payments as compliance risks that can trigger audits, penalties, or licensing issues.
What This Covers
- Sales tax obligations for cannabis retailers
- Cannabis excise tax registration and filing
- POS, inventory, and tax record alignment
- Recordkeeping and audit expectations
- Enforcement authority and consequences
Tax Types You Must Collect
Explains which taxes apply to cannabis retail sales.
- New York State sales tax on all taxable items
- Cannabis excise tax on cannabis products sold
- Taxes apply to every transaction processed through your POS
Filing and Reporting Requirements
Outlines what retailers are required to submit.
- Register with New York State Department of Taxation and Finance
- Register separately for cannabis excise tax
- File required sales tax and excise tax returns on time
- Report total sales exactly as recorded in your POS
- Ensure tax filings match POS and inventory totals
Recordkeeping Rules
Defines how long and what records must be kept.
- Maintain sales, inventory, and tax records for at least three years
- Records must be complete, accurate, and retrievable
- POS data, inventory reports, and tax filings must reconcile
Enforcement and Oversight
Identifies who enforces tax compliance.
- Enforcement agency: New York State Department of Taxation and Finance (DTF)
- DTF reviews filings, payments, and reported totals
- Mismatches are treated as audit red flags
What Operators Usually Miss
- Excise tax registration is separate from sales tax
- POS totals must match filed tax returns exactly
- Inventory discrepancies often trigger tax scrutiny
When This Comes Up
- Monthly or quarterly tax filings
- License renewal reviews
- Audits or data matching across agencies
- POS or inventory system changes
What Happens If You Ignore This
- Tax audits
- Monetary penalties and interest
- Holds or delays on license renewal
- Increased regulatory scrutiny
Related Pages
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