New York - Outbound - Manage Adult-Use Cannabis Products Tax

Updated by NIr Malchy

Tax Calculation Change

NY Potency Tax for adult-use cannabis products tax update Effective June 1, 2024. 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 single percentage-based tax rate of 9%. This new rate is imposed on the amount charged for the sale or transfer of adult-use cannabis products by a distributor to a retailer.

Learn more here: Adult-use cannabis products tax.

By default, Flourish Software calculates the Adult-Use Cannabis Products Tax and adds it as Est. Excise Tax on the totals of the outbound invoice:
Est. Excise Tax

We understand that every business has unique needs and processes. That's why we've given you the flexibility to either automatically calculate the tax and add it to your invoices or exclude it from them. This way, you can adapt the tax calculation method that best suits your operations, ensuring a smooth transition to the new tax rate.

Set The Tax To Zero For All New Outbound Invoices

After following the steps below, Flourish will explicitly set the Est. Excise Tax on the order to zero when you create a new outbound invoice. However, if needed, you can still calculate the tax on a specific order.

  1. Click Settings.
  2. Select Configuration.
  3. Select the facility to configure.
  4. Locate Outbound.
  5. Toggle 'On' Disable automatic excise tax calculation.
  6. Click on the top-right corner of the screen.
    Log in and log out to see the setting updates take effect.

The Setting

"Disable automatic excise tax calculation"

Outbound Order Totals with the Setting ON

Manage Tax Calculation On A Single Order

Manage the tax calculation for a single order by checking and unchecking the box next to Est. Excise Tax.

Checking the box calculates the tax, if applicable.

Unchecking the box sets the tax to zero.

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