Bill > S03141

This bill amends New York State tax law to expand sales and compensating use tax exemptions for tangible personal property used predominantly in agricultural and cannabis cultivation activities. Specifically, the bill adds cannabis cultivation to the existing tax exemption that previously only covered farming and commercial horse boarding. The exemption now applies to property used in cannabis cultivation under specific license types: adult-use cultivator licenses, adult-use cooperative licenses, and microbusiness licenses, all authorized under article four of the cannabis law. The bill provides detailed provisions about how motor vehicle usage can qualify for the tax exemption, including defining "predominantly" as more than fifty percent of the vehicle's use being in cannabis cultivation, and allowing calculation of usage by either mileage or hours. This change effectively provides tax relief for businesses involved in legal adult-use cannabis cultivation by allowing them to purchase equipment and vehicles without paying sales tax, similar to the tax treatment already afforded to traditional agricultural enterprises. The bill takes effect immediately upon enactment.

Budget and Finance

https://www.nysenate.gov/legislation/bills/2025/S3141