It has been three years this month since New York's cannabis law was passed, paving the way for legal marijuana sales. But there have been fewer financial highs than expected for the legal cannabis industry in Buffalo.
The city budgeted to take over $3 million in cannabis tax revenue this fiscal year, but has only collected around $66,000 so far. That’s a measly 2% of the budgeted revenue.
With the next budget due to be finalized in May, Buffalo Common Councilmember and Finance Committee chair Mitch Nowakowski says it’s clear budget lines need to be better forecast.
“I think there’s a multitude of things that we need to look forward to and in this upcoming budgeting we need to ensure that we are accurately projecting revenues,” Nowakowski said.
The amount of tax payable on cannabis products in New York depends on the potency and category of each product, and that’s on top of a 13% retail tax. Paula Collins is an attorney specializing in tax preparation and cannabis law.
“In the case of a cannabis dispensary, they also have to register on the cannabis tax portal. And that's all in addition to regular business and personal taxes that they have to file and pay each year,” Collins said.
There are just five legal cannabis dispensaries in Buffalo, and at least a further 13 waiting for license approval from the state according to the New York Office of Cannabis Management's website.
The rollout of legal marijuana sales has been sluggish statewide, with the state’s licensing process coming under scrutiny. New York State Governor Kathy Hochul herself called the state’s rollout a “disaster” in an interview with The Buffalo News, and on Monday she ordered an assessment of the state's Office of Cannabis Management in an effort to improve the process.
A press release from Hochul's office states that Commissioner for the Office of General Services Jeanette Moy has been tasked with conducting the assessment, and will "embed" in the Office of Cannabis Management for a minimum of 30 days.
