Attn New York State Retailers: Below is important information from the New York Association of Convenience Stores
New York State’s New 20% Supplemental
Sales Tax on Vaping Products and
Vaping Products Dealer Registration
The New York State Tax Department has posted on its web site a notice stating the following:
“Effective December 1, 2019, a new 20% supplemental sales tax will apply to retail sales of vapor products in New York. The tax is collected by a vapor products dealer. Beginning on December 1, 2019, any business that intends to sell vapor products must be registered as a vapor products dealer before making sales of vapor products.
The Tax Department is developing an online registration process and other guidance that will be available soon. Check this page periodically for new information. To receive email updates, subscribe to our Cigarette, tobacco, and vapor products taxes email list.”
That’s it. They don’t provide any specifics whatsoever — leaving everyone in our industry scratching their heads. But fear not, it will be “available soon.” Until then, here’s some background from NYACS.
In the new state budget adopted last March, the Governor and Legislature approved — over NYACS’ objections — the 20% supplemental sales tax on vaping products (above and beyond the regular sales tax) and a separate registration requirement for retail dealers of vaping products.
The 20% tax, which takes effect December 1st, will be collected by RETAILERS at the point of sale, not by wholesale distributors, which is stupid. NYACS pointed out to state officials that every other tobacco-related tax in New York State is pre-collected at the wholesale distribution level, and pleaded with them to do the same with this in the interest of consistency and sparing retailers the administrative hassle of recording and reporting. It fell on deaf ears. We’re stuck with it.
The Tax Department is currently preparing the tax return for retailers to use to report and remit the revenue from this new tax. You will remit it on the same schedule as the other sales tax you collect.
VAPING PRODUCT DEALER REGISTRATION
As for retail registration, right now, most New York convenience stores are registered with the Tax Department as retail tobacco dealers. It’s an annual registration with a $300 fee. The renewal application and fee payment for 2020 is due on September 20th of this year.
In the state budget, the powers that be decided — again, over our objections — to now require two separate retail registrations — one to sell tobacco products ($300), the other to sell vaping products (another $300).
The Tax Department is still developing the retail vaping product dealer application. The timetable is not clear. Will they will require these applications to be filed the same time you’re submitting your tobacco registration renewal September 20? We don’t know yet. We’re trying to get those answers right now.
If you haven’t already done so, I recommend you subscribe to the Tax Department’s cigarette, tobacco and vapor products email list so that once they have additional guidance and materials ready, you will receive them promptly. Click here to do that.
Feel free to call (518-432-1400) or email me (email@example.com) with any questions.
Jim Calvin, President
New York Association of Convenience Stores
August 26, 2019