New York’s cannabis market could lead to as much as $1.25 billion for the state over six years

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The state’s new budget makes a bold projection on what cannabis will deliver

According to a budget projection Governor Kathy Hochul presented early last week, New York is on track to raise $1.25 billion in tax revenue from legal cannabis sales over the next six years. It hasn’t been long since the state decided to open its doors to this market, and it’s already showing how tax benefits are becoming a reality. Many experts say that the Empire State has the potential to be among the most lucrative states for this growing industry, and so far, it has proven to be true.

Revenue projections are included in the state’s 2023 budget, which contains a sizable investment for projects needed to continue the economic and social recovery caused by the COVID-19 pandemic. Through a press release, Hochul said, “We have the means to immediately respond to the COVID-19 pandemic as well as embrace this once-in-a-generation opportunity for the future with a historic level of funding that is both socially responsible and fiscally prudent.”

New York State’s fiscal year 2023 budget forecasts more than $55 million in cannabis revenue, including $40 million to be raised through marijuana business licenses. Recreational cannabis opened its doors last year in New York and since Hochul took the governor’s seat in August, she has done what is necessary to accelerate the regulation of adult-use cannabis. There has definitely been a big change since she came in to replace former Governor Andrew Cuomo, who seemed to have those plans pretty much stalled.

Over the next six years, the governor’s office has said the state could be able to raise more than $1.25 billion in revenue from recreational cannabis taxes and fees. It also assumes that the annual total will grow as processors, producers and retailers begin operations.