Adult-use cannabis legalization was passed in New York State when Governor Andrew Cuomo signed the Marijuana Regulation & Taxation Act (the “MRTA”) into law on March 31, 2021, after the Governor had previously attempted to include the legalization of adult-use cannabis in his last three budget proposals. The MRTA is expected to create significant economic opportunities for New Yorkers and the State, which should help the State generate some much-needed tax revenue to address the budget shortfalls resulting from the Covid-19 pandemic. The Governor’s office estimates that legalization could create 30,000 to 60,000 new jobs and the tax collections from the adult-use cannabis program could reach $350 million annually. In order to raise the projected revenue while furthering the stated policy goals of helping those from disproportionately impacted communities and community reinvestment, New York took a novel approach to taxation of cannabis.
Avrohom Posen, The Blunt Truth, 04/22/2021 10:00:00