N.Y. Tax Law § 496 — Records to be kept; penalties

§ 496. Records to be kept; penalties. (a) Records to be kept. Every\ndistributor on whom tax is imposed under this article and every person\nwho sells adult-use cannabis products at retail shall maintain complete\nand accurate records in such form as the commissioner may require\nincluding, but not limited to, such items as the total THC content of\nthe adult-use cannabis products sold to or produced by such person;\ncomplete records of every retail sale of adult-use cannabis, and any\nother record or information required by the commissioner. Such records\nmust be preserved for a period of three years after the filing of the\nreturn to which such records relate and must be provided to the\ncommissioner upon request.\n (b) Penalties. In addition to any other penalty provided in this\narticle or otherwise imposed by law, every distributor on whom tax is\nimposed under this article and every person who sells adult-use cannabis\nproducts at retail who fails to maintain or make available to the\ncommissioner the records required by this section is subject to a\npenalty not to exceed five hundred dollars for each month or part\nthereof for which the failure occurs. This penalty may not be imposed\nmore than once for failures for the same monthly period or part thereof.\nIf the commissioner determines that a failure to maintain or make\navailable records in any month was entirely due to reasonable cause and\nnot to willful neglect, the commissioner must remit the penalty for that\nmonth.\n (c) The failure of any person who sells adult-use cannabis products at\nretail, except a person who possesses a valid registered organization\nadult-use cultivator processor distributor retail dispensary license or\nmicrobusiness license issued by the office of cannabis management, to\ncomply with subdivision (a) of this section for the adult-use cannabis\nproducts in such person's possession shall be presumptive evidence that\nthe tax thereon has not been paid, and that such person shall be liable\nfor the tax thereon unless evidence of such invoice, payment or\nassumption shall later be produced.\n (d) If books and records are not provided or are determined to be\ninsufficient, the amount of tax due shall be determined by the\ncommissioner from such information as may be available. In the absence\nof evidence of the wholesale price for the tax imposed by subdivision\n(a) of section four hundred ninety-three of this article, the tax may be\ndetermined based on the retail price of such adult-use cannabis\nproducts.\n