Adult-use cannabis sales and tax revenue

ALBANY, N.Y. (NEWS10)---New York State now has a total of 165 legal adult-use dispensaries. According to the Office of Cannabis Management, the demand for legal cannabis is up.

"In the first quarter of 2024, we sold $100 million dollars worth of cannabis. In the second quarter of 2024, we sold over $160 million dollars worth of cannabis, so almost $60 million dollars growth between the first and second quarters of 2024. Q3 looks like it’s on pace to surpass the second quarter as well," said John Kagia, OCM's Policy Director.

OCM said for the second quarter of 2024, that's about $23 million in cannabis taxes. Portions of that money gets dispensed back to local governments.

"This is one of the benefits that jurisdictions that legalized or approved cannabis businesses to operate in their jurisdictions get to enjoy," explained Kagia. "The state has a 13% sales tax that’s applied to all cannabis products that are sold. 9% of those monies go to the state, but 4% of those tax revenues are reverted back to the municipalities where these transactions were done."

According to the New York State Comptroller's Office, since the adult-use cannabis law took effect $5.9 million has been distributed to local governments in upstate New York, $3.2 million to Long Island, and $4.5 million to New York City.

Kagia explained how the amount is determined for each community. 

"We actually break down these sales down to the individual store level. We know which municipality each of these stores are located in."

These numbers do not account for illegal marijuana sales from unlicensed stores--- an issue the state continues to crack down on.

According to OCM, over the last three months, more than 1,000 of these illegal stores have been shut down. 

"Buy legal," said Kagia. "You know where the products are from. They are produced right here in the State of New York. They are tested and they are being operated by members of your communities."