This Is How Much Tax New York State Places On Marijuana Sales
Let's be honest; the real reason New York State legalized adult-use recreational cannabis is due to the potential tax revenue it will produce. Although marijuana was decriminalized, the state fast-tracked approval of the legalization of marijuana after COVID-19 wreaked havoc on the budget. So much money was provided for COVID-19 relief and to protect residents, that the state had few options to recoup the money. Then those in power realized that cannabis (and online sports betting) were the answer. Vices usually are, lol. People spend a lot of money on things like gambling, alcohol, tobacco, sex, drugs, and marijuana.
How Much Money Can New York State Make From Marijuana Sales?
Let's take a look at the tax revenue California generated this year from adult-use marijuana sales. 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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As you can see, marijuana sales have the potential to be very lucrative for New York State.
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 has a robust taxation plan in place 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 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.
Second, 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.
Third, there 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.