This Is How Much New York State Taxes Marijuana Sales
On Monday, November 21, 2022, the New York State Cannabis Control Board approved the first Conditional Adult-Use Retail Dispensary Licenses. The move hastens the retail portion of the state's legal adult-use recreational marijuana industry. The 36 dispensaries will be selling the first legal adult-use cannabis products grown by New York Farmers.
With legal state-sanctioned legal recreational sales around the corner, let's take a look at how much tax revenue New York State may make. People spend a lot of money on things like gambling, alcohol, tobacco, sex, drugs, and marijuana, so the tax income potential is ripe in New York. Marijuana sales have the potential to be very lucrative for the state.
How Much Money Can New York State Make From Marijuana Sales?
Looking at the tax revenue California generated this year from adult-use marijuana sales can give us an idea of what New York can expect. According to the California Department of Tax and Fee Administration, Cali has made almost $600 million this year alone (in two quarters),
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How Much Does New York State Tax Marijuana
New York predicts that the adult-use cannabis industry will generate millions, possibly billions of dollars in revenue for the state from taxes and other fees. The state's taxation plan aims to make sure it maximizes the legalization of marijuana. In addition to taxing distributors of adult-use marijuana products in the state, there are two taxes that consumers will pay. These taxes will be active soon, once the first legal retail dispensaries and lounges open,
There is a state excise tax imposed on the sale of cannabis products by a retail dispensary to a cannabis consumer at 9 percent of the products’ price.
Tthere is a local excise tax imposed on the sale of cannabis products by a retail dispensary to a cannabis consumer at four (4) percent of the products’ price. This tax is distributed to local governments based on where the retail dispensary is located.
As you can see, the legalization of marijuana will pay New York State handsomely. The tax revenue doesn't even include the fees imposed for licenses and other requirements for businesses participating in the marketplace.
But, it's not just marijuana. New York makes a lot of tax revenue from our bad habits.