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New York state's coffers are experiencing a significant boost from legal marijuana sales. The state anticipates collecting over $160 million in tax revenue for the fiscal year ending March 31, which is four times more than last year's earnings. Governor Kathy Hochul's recently released budget projects that New York will receive $248 million in cannabis tax revenue during the next fiscal year, starting April 1.
The state's cannabis industry has surpassed $1 billion in retail sales, reflecting robust growth and consumer confidence. Over 50 percent of New York's cannabis licenses have been awarded to social and economic equity applicants, empowering minority and women-owned businesses. The industry now boasts over 275 licensed dispensaries and 500 supply-side licenses.
The revenue from cannabis sales is expected to continue growing, with projections of $339 million in fiscal year 2027 and $374 million by 2029. The state imposes a 9 percent wholesale excise tax and a 13 percent retail excise tax, with 9 percent going to the state and 4 percent to participating localities. Additionally, 40 percent of the state's cannabis tax revenue is allocated to education funding, while another 40 percent supports a community reinvestment program.
Governor Hochul has taken steps to strengthen the legal cannabis market, including cracking down on illegal operations and enhancing the Office of Cannabis Management's capacity to issue licenses.