As New York continues to slow-step its way towards adult-use legalization, Gov. Andrew Cuomo is proposing a unique system for taxing cannabis based on potency.
Assuming the Democratic governor succeeds in his latest attempt to legalize recreational marijuana, New York would be the first state to levy a tax based on milligrams of THC. States typically base taxes on retail price, not the pot’s potency.
Taxing adult-use cannabis is part of Gov. Cuomo’s plan to dig New York out of its hole. The state is facing a multi-billion-dollar budget gap after the coronavirus pandemic ravaged the economy.
Meanwhile, the weed industry is on fire.. In his State of the State Address on Jan. 13, Cuomo said legal cannabis will eventually create 60,000 new jobs, $3.5 billion in economic activity, and $300 million in tax revenue.
