S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1232
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 13, 2023
                                ___________
 
 Introduced  by  M. of A. LUPARDO, STIRPE, DICKENS, WOERNER, FAHY, GIBBS,
   JACOBSON, ZEBROWSKI,  JACKSON  --  Multi-Sponsored  by  --  M.  of  A.
   GUNTHER,  SIMON -- read once and referred to the Committee on Ways and
   Means
 
 AN ACT to amend the tax law, in relation to exempting  certain  property
   and  services  used  in the cultivation of cannabis for adult-use from
   sales and compensating use taxes
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Paragraph 6 of subdivision (a) of section 1115 of the tax
 law, as amended by section 5 of part B of chapter  63  of  the  laws  of
 2000, is amended to read as follows:
   (6)  (A)  Tangible personal property, whether or not incorporated in a
 building or structure, for use or consumption predominantly [either]  in
 the  production  for sale of tangible personal property by farming [or],
 in a commercial horse boarding operation, or [in  both]  IN  THE  CULTI-
 VATION  OF  CANNABIS  FOR  ADULT-USE PURSUANT TO AN ADULT-USE CULTIVATOR
 LICENSE, AN ADULT-USE COOPERATIVE LICENSE, OR  A  MICROBUSINESS  LICENSE
 PURSUANT TO ARTICLE FOUR OF THE CANNABIS LAW.
   (B)  With  respect to the exemption of motor vehicles under this para-
 graph, (i) use of a motor vehicle [either] in the  production  phase  of
 farming [or], in a commercial horse boarding operation, or [in both,] IN
 THE  CULTIVATION  OF  CANNABIS  FOR  ADULT-USE  PURSUANT TO AN ADULT-USE
 CULTIVATOR LICENSE, AN ADULT-USE COOPERATIVE LICENSE, OR A MICROBUSINESS
 LICENSE PURSUANT TO ARTICLE FOUR OF THE CANNABIS LAW shall be defined as
 any use of the motor vehicle on property [either] farmed [or], used in a
 commercial horse boarding operation, or [both] USED IN  THE  CULTIVATION
 OF  CANNABIS  FOR ADULT-USE PURSUANT TO AN ADULT-USE CULTIVATOR LICENSE,
 AN ADULT-USE COOPERATIVE LICENSE, OR A MICROBUSINESS LICENSE PURSUANT TO
 ARTICLE FOUR OF THE CANNABIS LAW, by the motor vehicle purchaser or user
 or in direct and uninterrupted trips between properties farmed  or  used
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD02643-01-3
              

 A. 1232                             2
 
 in  such  operation[,  or  both,]  OR  CULTIVATION  by the motor vehicle
 purchaser or user, and (ii) "predominantly" shall mean  that  more  than
 fifty  percent  of  the  motor vehicle's use is either in the production
 phase  of  farming [or], in a commercial horse boarding operation, or in
 [both] THE CULTIVATION OF CANNABIS FOR ADULT-USE PURSUANT TO  AN  ADULT-
 USE  CULTIVATOR  LICENSE,  AN ADULT-USE COOPERATIVE LICENSE, OR A MICRO-
 BUSINESS LICENSE PURSUANT TO ARTICLE  FOUR  OF  THE  CANNABIS  LAW.  The
 percentage  of  such  vehicle's  use [either] in the production phase of
 farming [or], in a commercial horse boarding operation, or in [both] THE
 CULTIVATION OF CANNABIS FOR ADULT-USE PURSUANT TO AN ADULT-USE  CULTIVA-
 TOR  LICENSE,  AN  ADULT-USE  COOPERATIVE  LICENSE,  OR  A MICROBUSINESS
 LICENSE PURSUANT TO ARTICLE FOUR OF THE CANNABIS LAW,  may  be  computed
 either on the basis of mileage or hours of use, at the discretion of the
 motor  vehicle  purchaser or user. A person may purchase a motor vehicle
 qualifying for exemption under this paragraph  without  payment  of  tax
 imposed  by  section  eleven  hundred five or eleven hundred ten of this
 article by furnishing the vendor a properly completed exemption  certif-
 icate  promulgated  by the commissioner; and such purchaser may register
 such vehicle or apply for a certificate of title for such  vehicle  with
 the commissioner of motor vehicles or a county clerk, without payment of
 such  taxes, by furnishing such a properly completed certificate to such
 commissioner or clerk.
   § 2.  This act shall take effect immediately.