New York Cannabis Product Potency Tax
New York licensed adult-use cannabis distributors shipping to adult-use cannabis products retailers are required to collect a tax based on the item's potency. If you are an operator in this state, you will see this potency tax or cannabis product tax on the outbound order.
Requirements
- Products must have an associated COA (Lab Test Result)
- Products must have a state-approved category (see below)
- The order lines must be allocated.
- If these aren't met, you will see the warning below, for example:
Tax Details
- five-tenths of one cent ($0.005) per milligram of the amount of total THC for cannabis flower;
- Categories: Kief, Whole Flower
- eight-tenths of one cent ($0.008) per milligram of the amount of total THC for concentrated cannabis; and
- Categories: Liquid Marijuana RSO, Marijuana Extract for Inhalation, Rosin/Resin
- three cents ($0.03) per milligram of the amount of total THC for cannabis edible product.
- Categories: Capsule/Pill/Tablet, Marijuana Infused Topicals, Solid Marijuana Infused Edible, Tincture, Transdermal, Transmucosal Infused Extract.
- THC means Delta-9-tetrahydrocannabinol; Delta-8-tetrahydrocannabinol; Delta-10-tetrahydrocannabinol; and the optical isomer of such substances.
- Total THC means the sum of the percentage by weight or volume measurement of tetrahydrocannabinolic acid multiplied by 0.877, plus the percentage by weight or volume measurement of THC.
Item Set-Up
In anticipation of the BioTrack STS launch, the state-approved classes and categories are as follows. If you need to update your item categories, use the item bulk update feature.
Item Class | Item Category |
Cultivation | Clone Flower Mature Plant Other Material Plant Tissue Seed Waste |
Lot Products | Flower Lot Kief Lot Other Material Lot Wet Flower |
Intermediate Products | Bubble Hash CO2 Hash Extract Ethanol/Alcohol Extract Food Grade Solvent Extract Hash Hydrocarbon Extract Pressed Extract |
End Products | Capsule/Pill/Tablet Kief Liquid Marijuana RSO Marijuana Extract for Inhalation Marijuana Infused Topicals Rosin/Resin Solid Marijuana Infused Edible Tincture Transdermal Transmucosal Infused Extract Whole Flower |
Display
On the outbound order, you can see the tax next to the "Est. Tax" line under the "Subtotal." |
 |
Click the |
 |
Invoice PDF |
 |
icon to get more details.Warnings
If the inventory does not meet the requirements above, you will see the warning on the"Est. Tax" total: 
To resolve this, please do the following:
- Click the red icon
to see the message. - Resolve the issues.
