New York will collect $245 million a year in legal marijuana revenue, according to an analysis of the budget by the state comptroller. The Cannabis cash comes from taxes on retail sales through New York’s new adult-use marijuana law.
The comptroller’s analysis projects steady growth in Cannabis tax revenue, beginning with $20 million in fiscal year 2021-2022, then climbing to $115 million in 2022-2023, $158 million in 2023-2024 and finally hitting $245 million when the program is fully implemented in fiscal year 2024-2025.
While possession of up to three ounces of Cannabis is now legal in New York, sales of recreational pot aren’t expected to begin until 2022, which accounts for the estimate’s slow start.
And while Gov. Andrew Cuomo initially claimed that New York’s legal pot program would ultimately pull in $300 million a year in tax revenue, the comptroller’s estimate will still be welcome news to the cash strapped state.
After covering operational costs, 40 percent of the Cannabis cash will go to schools, while another 40 percent goes to communities most impacted by prohibition. The remaining 20 percent of tax revenue funds drug treatment and education.
Negotiations between lawmakers and Cuomo on the final adult-use bill helped establish a stronger social equity plan for the state, both in the form of reinvestment and industry opportunity.