New York is ready to legalize recreational marijuana after an agreement between Governor Andrew Cuomo and legislative leaders, according to Bloomberg. The deal would legalize cannabis use for adults 21 years old and above and includes 13% sales tax, 9% of which goes to the state and 4% to the localities.
Under the deal, the state would only be allowed to give out licenses that let a single entity handle all parts of a recreational cannabis transaction.
Distributors would collect an excise tax of as much as 3 cents per milligram of THC, the active ingredient in cannabis, with a sliding scale based on the type of product and its potency.
No changes would be made to the taxes already imposed on marijuana sold for medical purposes.
Sales of recreational marijuana could begin as soon as one year after enactment.
State Senate Finance Committee Chair Liz Krueger said he expects lawmakers to vote on the stand-alone legislation as soon as next week.
Legislative leaders want to separate the marijuana and budget debates to give them the upper hand in determining pot policy.
The deal is expected to increase the number of medical dispensaries and medical products sold in the state.
Once fully implemented, the legal cannabis program is expected to pull in about $350 million annually.
Most cannabis stocks are currently declining. TLRY is up 0.59% on premarket, WEED is down 3.63%, ACB is down 4.09%, APHA is down 4.07%
