On Tuesday, the New York Governor previewed the projected proceeds from an authorized cannabis program that he’s recommending through his yearly budget. More in-depth legislative language is slated for release later today.
Andrew has repeatedly stated that regulating and taxing marijuana will help cushion a $15-billion fiscal deficit. And although the expected $350-million in yearly returns from cannabis taxes won’t fix the issue independently, it connotes a window to improve the economy.
During his budget speech, the governor said his office is proposing the decriminalization of recreational marijuana that would accrue $350-millon. He added that $100-million would be set aside for social equity financing.
The briefing document for Cuomo’s Budget asserts that decriminalization should be implemented to foster and enhance consumption temperance, adequately safeguard public safety and health while fostering social equity.
Although it’s still unclear what social equity will be about, it’s a huge milestone that marijuana activists are tracking closely. A layout of the governor’s budget plan also said that the reform would undo past wrongs through investing in territories that were disproportionately affected by the fight against drugs.
Through the briefing document, the governor advocates for three tax forms for adult-use cannabis commodities;
- Taxes dependent on THC content applied at wholesale levels
- 10.25% surcharge tax at the customers’ purchase point
- Applicable local and state sales taxes
Andrew’s office stated that the tax on THC potency is meant to accurately capture the genuine market value and imminent public health dangers related to the ultimate marijuana product.
On Tuesday, Robert Mujica, the state Budget Director, also said that social equity initiatives will cushion communities hardest hit by the country’s stringent cannabis policies.
Cuomo has pitched decriminalization twice though his budget; however, bill legislation has stagnated due to disagreements about the allocation of tax revenue.