Well, it looks like NY will legalize recreational marijuana in the coming days and be the 15th state to do so! On March 24, 2021 the lawmakers decided in principal on what the law will looks like. The devil is in the details, but it looks like the law will closely resemble the Marijuana Reform and Taxation Act (MRTA).
Retail sales could begin as soon as December 2022.
It has been reported that as many as 900 retail stores would be allowed and that social equity operators would be permitted to have vertical operations with cultivation, processing, distribution and retail. Also the state is looking to favor those applications by business enterprises owned by women, minorities, veterans and others disparately impacted by antiquated cannabis laws and those located in impoverished areas.
Here are some key points (according to industry sources):
- The state’s 10 existing medical marijuana operators (known as “registered organizations”) could operate three adult-use stores, co-locating them with three of their MMJ dispensaries.
- Existing registered organizations also could double their current number of dispensaries from four to eight, provided two were in underserved areas.
- Cannabis products would be taxed at 13% — 9% state sales tax (which among other things, would fund social equity programs and incubators) and 4% to local municipalities.
- A wholesale tax would be imposed based on product potency, which can be as high as 3 cents per milligram of THC, depending on the product.
Bringing products to market and opening businesses in a highly regulated space is particularly challenging due to the risks and costs involved. Commercial success in the cannabis industry requires thorough planning to prepare you and your business for application (which includes individual and business character profiles, land-use, zoning, brand strategy and business planning, product selection and production, regulations and compliance, and many other legal and business considerations).
Please contact us or call (212) 688-8944 to discuss your interests and explore your options. We can discuss some of the legal issues and compliance required to help prepare your business for success in the cannabis space.
**This post is for informational purposes only, For legal advice, contact a Canna Business Lawyer**
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