New York Scraps Potency Tax In New Budget
The new tax law entails levying a 9% excise tax at the wholesale level
The state hopes the easier tax structure will help licensed owners.
New York state is tossing out its current legal cannabis tax structure in favor of one that is less complicated. The complicated potency-based tax system is being replaced with a new wholesale structure that was part of the state’s new budget.
S.B. 8309 was passed by the state legislature last weekend and is expected to be signed by Governor Kathy Hochul. The language is similar to the changes proposed by Hochul in January. The Governor has become more involved in the oversight of the Office of Cannabis Management and the Cannabis Control Board since the program rollout has been fraught with problems. Last week, the Governor held a press conference discussing new law enforcement strategies to close unlicensed operations.
New tax structure
The new tax law entails levying a 9% excise tax at the wholesale level. That rate would be assessed on 75% of the retail price from vertically integrated businesses like those with a microbusiness license. The tax on medical cannabis would be cut from 7% to 3.5%.
To Read The Rest Of This Article On Green Market Report, Click Here
