AGENCY TESTIMONY
Recent state budget updates affecting cannabis in NYC
2:22:04
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76 sec
The IBO outlines recent state budget items relevant to cannabis taxation and enforcement in New York City.
- The 2025 state budget expanded and clarified powers of local law enforcement to respond to unlicensed cannabis sales
- Authorities can now immediately shutter a business for up to a year if it's selling cannabis without a license and posing an imminent threat to public health and safety
- The cannabis potency tax was repealed and replaced with a flat 9% tax on wholesale cannabis sales from processors to distributors
- The city's cannabis tax (4% of taxable retail sales within NYC) is not directly affected by these changes
Alaina Turnquist
2:22:04
Next, moving to Albany Update.
2:22:06
The 2025 state budget contained items relevant to cannabis taxation and enforcement in New York City.
2:22:13
First, the enacted budget expanded and clarified the powers of local law enforcement to respond to unlicensed sales of cannabis products Local law enforcement authorities, as we've discussed today, can now immediately shutter a business for up to a year if they find the business, is both selling cannabis without a license and is deemed as posing an imminent threat to public health and safety.
2:22:33
As mentioned earlier, IBO expects that unlicensed cannabis dispensary is continuing to be padlocked or closing voluntarily cannabis will result in cannabis tax revenue by the city increasing.
2:22:45
The enacted budget also repealed the cannabis potency tax, which was based on the THC content of cannabis products sold by processors to retail dispensaries.
2:22:55
In place of the potency tax, the state introduced a flat 9% tax on wholesale cannabis sales from processors to distributors.
2:23:05
This tax will not directly affect Citi cannabis tax collections since Citi cannabis tax is based solely on retail sales within the Citi.
2:23:15
The city receives 4% of taxable retail sales of cannabis that take place within New York City.
