N.Y. Tax Law 494 – Registration and renewal
§ 494. Registration and renewal. (a) (1) Every distributor on whom tax is imposed under this article and every person who sells adult-use cannabis products at retail must file with the commissioner a properly completed application for a certificate of registration and obtain such certificate before engaging in business, provided, however, this § of the penal law. An application for a certificate of registration must be submitted electronically, on a form prescribed by the commissioner, and must be accompanied by a non-refundable application fee of six hundred dollars. A certificate of registration shall not be assignable or transferable and shall be destroyed immediately upon such person ceasing to do business as specified in such certificate, or in the event that such business never commenced.
Terms Used In N.Y. Tax Law 494
- Affidavit: A written statement of facts confirmed by the oath of the party making it, before a notary or officer having authority to administer oaths.
- Appeal: A request made after a trial, asking another court (usually the court of appeals) to decide whether the trial was conducted properly. To make such a request is "to appeal" or "to take an appeal." One who appeals is called the appellant.
- Appellate: About appeals; an appellate court has the power to review the judgement of another lower court or tribunal.
- Conviction: A judgement of guilt against a criminal defendant.
- Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
- Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
- Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
- Transcript: A written, word-for-word record of what was said, either in a proceeding such as a trial or during some other conversation, as in a transcript of a hearing or oral deposition.
(2) Provided, however, that the commissioner shall refund or credit an application fee paid with respect to the registration of an adult-use cannabis business in this state if, prior to the beginning of the period with respect to which such registration relates, the certificate of registration described in paragraph one of this subdivision is returned to the department or, if such certificate has been destroyed, the operator of such business satisfactorily accounts to the commissioner for the missing certificate, but such business may not sell adult-use cannabis products in this state during such period, unless it is re-registered. Such refund or credit shall be deemed a refund of tax paid in error, provided, however, no interest shall be allowed or paid on any such refund.
(b) (1) The commissioner shall refuse to issue a certificate of registration to any applicant and shall revoke the certificate of registration of any such person who does not possess a valid license from the office of cannabis management.
(2) The commissioner may refuse to issue a certificate of registration to any applicant where such applicant:
(i) has a past-due liability as that term is defined in section one hundred seventy-one-v of this chapter;
(ii) has had a certificate of registration under this article, a license from the office of cannabis management, or any license or registration provided for in this chapter revoked or suspended where such revocation or suspension was in effect on the date the application was filed or ended within one year from the date on which such application was filed;
(iii) has been convicted of a crime provided for in this chapter within one year from the date on which such application was filed or the certificate was issued, as applicable;
(iv) willfully fails to file a report or return required by this article;
(v) willfully files, causes to be filed, gives or causes to be given a report, return, certificate or affidavit required by this article which is false;
(vi) willfully fails to collect or truthfully account for or pay over any tax imposed by this article;
(vii) has been determined to have possessed illicit cannabis within one year from the date on which such application was filed;
(viii) is a distributor that has been determined to have knowingly sold adult-use cannabis products to any person who sells adult-use cannabis products at retail and who is not registered under this section, or whose registration has been suspended or revoked; or
(ix) has a place of business at the same premises as that of a distributor upon whom tax is imposed under this article, or person who sells adult-use cannabis products at retail, whose registration has been revoked and where such revocation is still in effect, unless the applicant provides the commissioner with adequate documentation demonstrating that such applicant acquired the premises or business through an arm's length transaction as defined in paragraph (e) of subdivision one of section four hundred eighty-a of this chapter and that the sale or lease was not conducted, in whole or in part, for the purpose of permitting the original registrant to avoid the effect of the previous revocation for the same premises.
(3) The commissioner may revoke the certificate of registration issued to any person who:
(i) has had any license or registration provided for in this chapter revoked or suspended;
(ii) has been convicted of a crime provided for in this chapter where such conviction occurred not more than one year prior to the date of revocation;
(iii) willfully fails to file a report or return required by this article;
(iv) willfully files, causes to be filed, gives or causes to be given a report, return, certificate or affidavit required by this article which is false;
(v) willfully fails to collect or truthfully account for or pay over any tax imposed by this article; or
(vi) is a distributor that has been determined to have knowingly sold adult-use cannabis products to any person who sells adult-use cannabis products at retail and who is not registered under this section, or whose registration has been suspended or revoked.
(4) In addition to the grounds for revocation in this subdivision, where a person who holds a certificate of registration is determined to have possessed or sold illicit cannabis:
(1) such registration may be revoked (i) for a period of up to one year for the first such possession or sale by such person;
(ii) for a period of up to three years for a second such possession or sale within a period of five years by such person; and
(iii) for a period of up to five years for a third such possession or sale within a period of five years by such person. A certificate of registration may be revoked pursuant to this paragraph immediately upon such person's receipt of written notice of revocation from the commissioner.
A person who is notified of a revocation of their certificate of registration pursuant to this paragraph shall have the right to have the revocation reviewed by the commissioner or their designee by contacting the department at a telephone number or an address to be disclosed in the notice of revocation within ten days of such person's receipt of such notification. Such person may present written evidence or argument in support of their defense to the revocation or may appear at a scheduled conference with the commissioner or their designee to present oral arguments and written and oral evidence in support of such defense. The commissioner or their designee is authorized to delay the effective date of the revocation to enable such person to present further evidence or arguments in connection with the revocation. The commissioner or their designee shall cancel the revocation of the certificate of registration if the commissioner or their designee is not satisfied by a preponderance of the evidence that a basis for revocation pursuant to this paragraph exists. An order of revocation of a certificate of registration under this paragraph shall not be reviewable by the division of tax appeals but may be reviewed pursuant to Article 78 of the civil practice law and rules by a proceeding commenced in the supreme court within four months of the revocation petitioning that the order of revocation be enjoined or set aside. Such proceeding shall be instituted in the county where the commissioner has their principal office. Upon the filing of such petition the court shall have jurisdiction to set aside such order of revocation, in whole or in part, or to dismiss the petition. The jurisdiction of the supreme court shall be exclusive and its order dismissing the petition or enjoining or setting aside such order, in whole or in part, shall be final, subject to review by the appellate division of the supreme court and the court of appeals in the same manner and form and with the same effect as provided by law for appeals from a judgment in a special proceeding. All such proceedings shall be heard and determined by the court and by any appellate court as expeditiously as possible and with lawful precedence over other civil matters. All such proceedings for review shall be heard on the petition, transcript and other papers, and on appeal shall be heard on the record, without requirement of printing.
(c) Where a person that does not possess a certificate of registration under this section has been determined to have possessed or sold any adult-use cannabis product or illicit cannabis:
(1) The commissioner may revoke a certificate of authority issued to such person pursuant to section eleven hundred thirty-four of this chapter for a place of business where such person has been determined to have possessed for sale or to have sold adult-use cannabis product or illicit cannabis three or more times within a period of five years without a certificate of registration.
(2) The commissioner may refuse to issue a certificate of authority under section eleven hundred thirty-four of this chapter to a distributor upon whom tax is imposed under this article, or a person who sells adult-use cannabis products at retail, who has a place of business at the same premises as that of a person whose certificate of authority has been revoked pursuant to paragraph one of this subdivision and where such revocation is still in effect, unless the applicant provides the commissioner with adequate documentation demonstrating that such applicant acquired the premises or business through an arm's length transaction as defined in paragraph (e) of subdivision one of section four hundred eighty-a of this chapter and that the sale or lease was not conducted, in whole or in part, for the purpose of permitting the original registrant to avoid the effect of the previous revocation for the same premises.
(d) A certificate of registration shall be valid for the period specified thereon, unless earlier suspended or revoked. Upon the expiration of the term stated on a certificate of registration, such certificate shall be null and void.
(e) Every holder of a certificate of registration must notify the commissioner of changes to any of the information stated on the certificate, or of changes to any information contained in the application for the certificate of registration. Such notification must be made on or before the last day of the month in which a change occurs and must be made electronically on a form prescribed by the commissioner.
(f) Every holder of a certificate of registration under this article shall be required to reapply prior to such certificate's expiration, during a reapplication period established by the commissioner. Such reapplication period shall not occur more frequently than every two years. Such reapplication shall be subject to the same requirements and conditions as an initial application, including grounds for refusal and the payment of the application fee.
(g) Any person who is required to obtain a certificate of registration under subdivision (a) of this section who possesses adult-use cannabis products without such certificate shall be subject to a penalty of up to seven thousand five hundred dollars for a first violation and up to fifteen thousand dollars for a second or subsequent violation within three years following a prior violation. Any such adult-use cannabis product shall be subject to immediate forfeiture to, and seizure by, the commissioner or their duly authorized representatives, or the duly authorized representatives of the office of cannabis management.
(h) No distributor on whom tax is imposed under this article shall sell any adult-use cannabis product to any person who sells adult-use cannabis products at retail and who is not registered under this section, or whose registration has been suspended or revoked.