New York cannabis regulations are in limbo. But the pot industry is booming on reservations.

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State officials said it is legal for the tribes across New York to sell marijuana before regulators have adopted their own rules because the tribes have sovereignty.

A Seneca-owned gas station displays a green cross symbol, indicating the store sells cannabis. | Meghan Brink/POLITICOSALAMANCA, N.Y. — In this small town in western New York, nearly 20 marijuana dispensaries have opened up in just the last few months.

For many in Western New York, the Seneca reservation is the closest place to purchase legal weed, far from other legal destinations like Massachusetts or Canada. A customer in a dispensary in Kill Buck, a town on Seneca Territory, said they had driven over an hour to visit the dispensary.Next Leaf Pharma is a marijuana dispensary in Salamanca, N.Y., that sits between the local bank and Dollar Tree on Native American land.

in an attempt to ensure the state’s equity goals are fulfilled in the regulations. Recently, the Cannabis Control Board announced it is moving to approveAccording to Redeye, who has helped multiple tribes establish their cannabis regulations, the most common practice for tribal governments is to create a central Native-owned and operated dispensary. The Cayuga Nation in central New York and the Shinnecock Indian Nation on Long Island have opted for that route.

Like gas and cigarettes, sales of cannabis on tribal land are not subjected to state retail tax, which means weed can be sold at cheaper prices than at state-licensed dispensaries. Owners of the Mohawk dispensaries maintained that they did not have to follow the tribal council’s rules,Concerned with the risks to health and safety the sales of unregulated cannabis posed to the community, the tribal council ordered the dispensaries to shut down. The owners, however, refused, resulting inDispensaries selling marijuana without a license reflects a larger trend seen off Native American territory statewide.

Phan, a CBD shop owner in New York City, said in an interview that “90 percent of the people come into my store asking to buy weed right now.”A visit to marijuana shops on a reservationA similar situation has occurred in the Seneca Nation of Indians, where dispensaries continue to open on both the Cattaraugus and Tonawanda territories, despite their tribal government lacking regulations on the sales of cannabis. Several shop owners declined to discuss their businesses.

The practice of “gifting” is viewed by some retailers as a loophole for unregulated retail sales, however, regulators maintain that under state law all sales of marijuana, including “gifting,” are only allowed by licensed dispensaries. The 9 percent excise tax and 4 percent local tax that will be placed on state-licensed retail sales, which New York estimates could bring in more than $1 billion in revenue over the next six years, could make it harder for state-licensed dispensaries near Native American reservations to stay competitive with prices.

 

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