The Empire State has an empire of a cannabis industry waiting to be tapped
Since the legal market arrived on New York’s doorstep a few weeks ago, many people and experts have been very aware that it is only a matter of time before revenues begin to reflect the exploitation and this state begins to stand shoulder to shoulder with California. According to various projections, the Empire State is expected to soon be able to bring in about $245 million in marijuana revenue annually, at least according to the state comptroller in a new budget analysis.
The first year of sales may be off to a slow start, reflecting a total of just $20 million in tax and fee collections. “While there will be increased revenues from marijuana legalization and sports betting, the new revenue sources with the largest fiscal impacts are [personal income tax] and corporate tax increases,” the analysis says. Even so, these latter sources are something to be considered for the time being, as cannabis undoubtedly presents an ongoing revenue opportunity on the table that will grow steadily over the next few years. For example, while the fiscal year 2021-2022 is projected to bring in $20 million in total tax revenue. By the fiscal year 2022-2023, that figure is expected to rise to $115 million and so on.
“As the state’s economic recovery continues, tax collections have exceeded expectations, and forecasts have improved,” the report says. “In addition, the state will also benefit from a historic amount of federal aid and new revenues from tax increases, recreational marijuana legalization, and online sports betting, totaling an estimated $26.7 billion in SFY 2021-22.” It should be noted that, although the bill to legalize cannabis in the state has already been signed by New York Governor Andrew Cuomo, retail stores are not expected to launch until next year.