Author: Kyle Jaeger
New York stands to generate more than $1.25 billion in marijuana tax revenue over the next six years, according to an estimate included in the governor’s executive budget that was released on Tuesday.
For fiscal year 2023, the state is projected to collect $56 million in revenue, most of which will come in the form of licensing fees. From there, the yearly revenue estimates quickly increase as sales are expected to come online and expand: $95 million in 2024, $158 million in 2025, $245 million in 2026, $339 million in 2027 and $363 million in 2028.
Revenue from the nine percent state excise tax on cannabis will go to education (40 percent), community reinvestment (40 percent) and drug treatment (20 percent). Another four percent tax will support counties (25 percent) and cities, towns and villages (75 percent) that allow marijuana businesses to operate in their jurisdiction. There’s also a separate potency-based tax on cannabis products when they are transferred from distributors to retailers.
The initial tax projections are lower than what state analysts put forward last year. First in May the comptroller said New York would take in $245 million in marijuana revenue for the 2024 fiscal year. Now the state says it expects exactly that much two years later.