§ 496. Records to be kept; penalties. (a) Records to be kept. Every
distributor on whom tax is imposed under this article and every person
who sells adult-use cannabis products at retail shall maintain complete
and accurate records in such form as the commissioner may require
including, but not limited to, such items as the total THC content of
the adult-use cannabis products sold to or produced by such person;
complete records of every retail sale of adult-use cannabis, and any
other record or information required by the commissioner. Such records
must be preserved for a period of three years after the filing of the
return to which such records relate and must be provided to the
commissioner upon request.

(b) Penalties. In addition to any other penalty provided in this
article or otherwise imposed by law, every distributor on whom tax is
imposed under this article and every person who sells adult-use cannabis
products at retail who fails to maintain or make available to the
commissioner the records required by this section is subject to a
penalty not to exceed five hundred dollars for each month or part
thereof for which the failure occurs. This penalty may not be imposed
more than once for failures for the same monthly period or part thereof.
If the commissioner determines that a failure to maintain or make
available records in any month was entirely due to reasonable cause and
not to willful neglect, the commissioner must remit the penalty for that
month.

(c) The failure of any person who sells adult-use cannabis products at
retail, except a person who possesses a valid registered organization
adult-use cultivator processor distributor retail dispensary license or
microbusiness license issued by the office of cannabis management, to
comply with subdivision (a) of this section for the adult-use cannabis
products in such person's possession shall be presumptive evidence that
the tax thereon has not been paid, and that such person shall be liable
for the tax thereon unless evidence of such invoice, payment or
assumption shall later be produced.

(d) If books and records are not provided or are determined to be
insufficient, the amount of tax due shall be determined by the
commissioner from such information as may be available. In the absence
of evidence of the wholesale price for the tax imposed by subdivision
(a) of section four hundred ninety-three of this article, the tax may be
determined based on the retail price of such adult-use cannabis
products.