When you buy cannabis at a New York State licensed cannabis dispensary, like the Purple Owl, the taxes you pay will go directly to communities across the state.
What Taxes are Applied to Cannabis in the Adult-Use Cannabis Market?
Taxes collected from licensed adult-use dispensaries are deposited into the Cannabis Revenue Fund. Money from that fund supports the work of the Office of Cannabis Management and other state/local partners who oversee the cannabis industry as well as other targeted initiatives. The Tax Law establishes two point-of-sale taxes on adult-use cannabis products including:
State Tax: 9% Supports statewide public education, drug treatment programs, and community reinvestment. Even if there isn’t a licensed adult-use dispensary in your community you can still benefit from legal cannabis sales through this statewide tax.
Local Tax: 4% This money stays in the village, town, city, or county where the cannabis sale occurs. If you’re buying cannabis outside of NYC, this tax is distributed between the county and city/town/village where the sale occurs. Local governments across the State will get to decide how this money is distributed to benefit their community. Cannabis products are also subject to a “THC Tax” based on the amount of THC in milligrams in the product.
This tax is paid by the distributor when they sell cannabis products to a licensed adult-use dispensary. You won’t see this tax on your receipt but the cost is factored into the purchase prices for cannabis set by licensed adult-use dispensaries.
How is the tax revenue reinvested in my community?
40%: Education Statewide: Revenue will support spending on education across the state.
40%: Community Grants Reinvestment Fund: The fund will award grants to qualified community-based non-profit organizations and local governments to support community revitalization efforts such as job placement and skills services, healthcare, housing and childcare services. Grants will be issued by the Cannabis Advisory Board in the communities that were most harmed by cannabis prohibition.
20%: Drug Treatment & Public Education Statewide: Revenue will support the development of public health, education and prevention campaigns, and provide substance use disorder treatment programs for youth and adults.
How do I know if I’m purchasing from a licensed adult-use dispensary?
All licensed adult-use dispensaries are issued a Dispensary Verification Tool which is posted in the storefront of each licensed adult-use dispensary. Scan the QR code to be directed to OCM’s website with a list of all licensed adult-use cannabis dispensaries.
