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New York predicts $1.25 billion in pot tax revenue over six years
New York is looking at major revenue from cannabis sales over the next six years according to Governor Kathy Hochul.
New York is poised to collect $1.25 billion in revenue from taxes on legal cannabis sales, according to a budget projection from Democratic Governor Kathy Hochul released on Tuesday. The revenue projections are included in the state budget for next year, which includes significant investment in projects designed to continue the economic and social recovery from the ongoing coronavirus pandemic.
“We have the means to immediately respond to the COVID-19 pandemic as well as embrace this once-in-a-generation opportunity for the future with a historic level of funding that is both socially responsible and fiscally prudent,” Hochul said in a statement from the governor’s office.
New York’s state budget for the 2023 fiscal year, which is detailed in an 85-page briefing book from the governor’s office, anticipates $56 million in cannabis revenue, including $40 million collected from license fees on cannabis businesses. State lawmakers legalized recreational cannabis last year, and since taking office in August Hochul has vowed to expedite the regulation of adult-use cannabis stalled by Andrew Cuomo, the former governor who resigned last summer because of a sexual harassment scandal.
Over the next six years, the governor’s office predicts that the state will collect more than $1.25 billion in revenue from taxes and fees on recreational cannabis, with the annual total increasing as more producers, processors and retailers launch their operations. Cannabis tax revenue is expected to increase to $95 million in fiscal year 2024 and reach an estimated $363 million in 2028.
New York Budget Projections Include Revenue from Cannabis ‘Potency Tax’
The taxes on New York’s cannabis industry include a nine percent excise tax and another four percent tax for local governments. The state’s regulations also include a separate tax on THC, with the amount of tax collected rising as the potency of a product rises.
© 420 Intel
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