MJ Back On The Budget, But For How Long
Governor Cuomo, Included MJ in the budget proposal, setting the stage for another reform push. Cuomo put a similar plan in motion last year that was immediately dropped. The excuse is the lawmakers could not concur as how they were going to legalize. Trust that a rocket scientist isn’t needed. The administration us optimistic that this year will be different.
According to the 2020 proposal NY stands to receive 20 million in revenue for the 2021 fiscal year and 63 million by 2022,by 2025 the amount is speculated at 188 million, this is according to Cuomo’s projections.
He went on to state that “The proposal will also correct past harms to individuals and communities that have disproportionately been impacted by prohibition. To safeguard public health, the proposal limits the sale of cannabis products to adults 21 and over and establishes stringent quality and safety controls including oversight over the packaging, labeling, advertising and testing of all cannabis products. These efforts will be done in coordination with neighboring states Connecticut, New Jersey and Pennsylvania. The Governor will also propose creating a first of its kind Global Cannabis and Hemp Center for Science, Research and Education with SUNY and other expert partners.”
Under the said proposal there would three levels of taxes, a whopping 20 percent tax would be imposed on cannabis sold by any entity to a retailer. Cultivators would be taxed at a $1 per dry weight gram for flower, trim would be taxed at $.25 per dry gram and we cannabis would be taxed at $.14 per gram. Local jurisdictions with a population least one million people that allow marijuana business to operate would receive revenue from a seperate two percent tax.
“The Budget regulates and controls the production, distribution, transportation, and sale of cannabis, cannabis related products and medical cannabis within the NYS, for the purposes of fostering and promoting temperance in their consumption, to properly protect the public health, safety, and welfare and to promote social equity,” the proposal states. The budget also calls for workforce increases at certain state agencies, including bolstering resources at the Division of Alcohol Beverage Control “to support the new Office of Cannabis Management (OCM).”
OCM will oversee a “first-in-nation comprehensive cannabis regulatory framework” that “centralizes all the licensing, enforcement and economic development functions in one entity.” It will “administer all licensing, production, and distribution of cannabis products in the adult-use, industrial, and medical cannabis markets,” according to the plan.
New York’s hemp regulators would also benefit from the budget proposal, with Cuomo calling for $1.1 million in “resources to support nine additional hemp oversight and inspection related staff.”