New York will generate over $1 billion in marijuana taxes, government officials predict

By Natan Ponieman

According to official projections, the state of New York could generate over $1 billion in marijuana taxes before the end of the decade.

An estimate included in the governor’s executive budget suggested the state could collect more than $1.25 billion from royalties and other taxes by 2028.

Photo by Ferdinand Stöhr via Unsplash

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The Empire State legalized adult-use marijuana in March 2021, but cannabis stores are unlikely to open until late 2022 or early 2023 as New Yorkers wait for the state to issue licenses to producers, distributors, and retailers. Marijuana-related tax collection is expected to increase annually.

According to Marijuana Moment’s reporting, “For fiscal year 2023, the state is expected to generate $56 million in revenue, most of which will come in the form of royalties. From there, annual sales estimates are rising rapidly as sales are expected to come online and expand: $95 million in 2024, $158 million in 2025, $245 million in 2026, $339 million US dollars in 2027 and US$363 million in 2028.”

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Revenue from the 9% state cannabis excise tax goes toward education, community reinvestment, and drug treatment. Another 4% tax will support counties, cities, and towns that allow marijuana operations in their jurisdiction. Edibles are taxed at $0.03 per mg THC, concentrates are taxed at $0.008 per mg THC, and cannabis flower is taxed at $0.005 per mg THC.

This article originally appeared on Benzinga and has been republished with permission.