A pair of influential New York legislators are trying to reform the state’s tax system for the sale of adult-use cannabis, but it’s too complicated right now, they say.
State legislative majority leader Crystal Peoples Stokes and state senator Jeremy Cooney announced on Monday a proposal that would make major changes to how the Empire State taxes the sale of recreational cannabis.
According to NY1 reportsunder the proposed law, “the current tax imposed on the basis of effect will be replaced by an increase in the current excise tax.” It is not immediately clear what the impact will be.”
“After careful consideration, it became clear that we needed to simplify the adult-use cannabis tax structure,” said People Stokes. NY1 quote“As states continue to build licensed cannabis businesses, simpler tax structures will be better for businesses and consumers. This new tax approach will ultimately lead to thriving cannabis businesses at every level of the supply chain. A lot of money will be reinvested in our communities and invested in education and other important programs.”
Cooney said that if New York is to achieve its goal of “building the most diverse and inclusive cannabis market in the country, it must create an environment in which small businesses can thrive.”
“By replacing potency taxes with increased excise taxes, licensed operators, including social equity operators, will be able to sell competitively priced products and avoid illegal market underprice without sacrificing revenue. It will be less susceptible to cuts and can be reinvested and used for valuable community programming,” Cooney said.
According to the bill’s official legislative outline: The measure would “increase the tax from 9% to 16% of the amount charged on the sale or transfer of adult cannabis products to retail customers.” or remove the requirement that such products be produced by the person who sells them, and make relevant provisions.”
Peoples-Stokes has been heavily involved in efforts to legalize marijuana in New York, officially ending the ban on recreational cannabis use in 2021.
After the state approved the first 52 cultivation licenses for a new recreational cannabis program last year, Peoples-Stokes said the state was “a viable and inclusive path to access cannabis for minorities and small farmers.” We are moving towards realizing our goal of creating a We provide opportunities to create intergenerational wealth for families and communities. ”
Her new tax bill comes at a time when states are considering expanding nascent cannabis programs.
Last week, New York regulators announced they were doubling the number of licenses for cannabis retailers to 300 from an original plan of 150.
“This expansion will allow more entrepreneurs to join the first wave of this industry and take advantage of the growing demand for cannabis products,” said Tremaine Wright, chairman of the New York Cannabis Control Board. said at the time. “As more companies enter this market, innovation and competition will increase, leading to a higher quality experience for consumers. It will be profitable.”
According to NY1The new tax measures by Peoples-Stokes and Cooney “reported New York legislators and Gov. Kathy Ho-Chol for a broader $227 billion budget plan expected to be passed by April 1, the start of New York’s fiscal year.” It is proposed because we are negotiating about