🎶 Start spreading the news…🎶  New York cannabis legalization is happening. Not everything’s set in stone at this point, but here’s what the bill looks like at the moment. NB: This post will be updated continually as more information comes out and as New York state continues to define its legal cannabis market.

What New York Cannabis Legalization will look like

New York’s cannabis market will emphasize social equity and opportunity based off the initial language of the bill. The bill includes specific and stated language that “50% of all adult-use licenses” to be issued to social equity applicants. The ambitious number and S.E. program will include grants, incubator programs and low-interest loans.

However, the bill itself does not include a specific number of available licenses for the adult-use market. That number will be determined by the state’s to-be-named Office of Cannabis Management.

New York Cannabis Licensing will look like ???

The Office of Cannabis Management and individual municipalities will have a lot of say over what New York’s regulated cannabis industry will look like.

Here’s a look at available licenses:

• Retailer
• Cultivator
• Processor
• Wholesaler
• Delivery

The OCM will determine how many licenses will be available for would-be adult-use applicants. Additionally, towns and municipalities, similar to neighboring New Jersey, will have the ability to opt out of allowing cannabis retail.

We also know that as the bill stands, there will not vertical integration allowed. However, microbusiness licensees would be allowed to be vertically integrated. If it stands, this is a decent effort by the state of NY to help level the playing field a bit for the little guy. We’ll see.

New York Cannabis Taxes

New York will have a 9% state tax and municipalities will be able to impose a 4% local tax. There will also be excise taxes imposed, but by and large, this is a very reasonable number considering tax rates in other markets nationally. The state tax revenues will be divvied up among reinvestment into communities disparately impacted by the war on drugs, schools, and drug treatment programs.

We will continue to update this post as more information regarding New York’s cannabis market becomes available. If you have questions about cannabis licensing opportunities in New York, New Jersey or anywhere else, please contact MMLG directly: info@mmlg.com