New York’s Massive Cannabis Gray Market Could Cost The State $2.6 Billion In Lost Taxes By The End Of The Decade

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According to a new report, with only four licensed cannabis dispensaries in the Empire State and more than 1,400 unlicensed pot shops, the Wild West of Weed will lose billions in revenue if it doesn't stop the lawlessness soon.

HOW AMERICA BOTCHED CANNABIS LEGALIZATION

As for the criticism that OCM’s focus on social equity and the slow rollout of the licensed market is effectively helping the unlicensed market take root on seemingly every corner of Manhattan and the other four boroughs, Kagia says doing the right thing takes time. “The state would generate about $200 million per year with 20% of the existing smoke shops converting to a transitional license,” says Paula Collins, an attorney who represents unlicensed dispensaries.

The real issue at hand is that some of the unlicensed shops, especially those operating as private clubs with modest “membership fees,” have a sound legal argument thanks to a loophole, or a “safe harbor provision,” depending on your perspective, in the Marijuana Regulation and Taxation Act that allows their unlicensed businesses to operate legally.

“I estimate that the state would generate about $180 million to $200 million per year with 20% of the existing smoke shops converting to a transitional license,” says Collins. “The way I see it is that the unlicensed market has always been here, and these transactions have always occurred. But it’s really the state that’s not making the overtures to the unlicensed market, which I think would really solve a lot of problems and put money in the pockets of the state and the city.

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What are you going to do…. Tell them they can’t use a bank? 🤣

I think New York City is the perfect place for TheDemocrats to hold their convention. Lawlessness, 2024.

Why only 4? Only the rich and connected get license?

Everything the Left touches they destroy. Legalizing marijuana? Total chaos ensues. Not surprising.

You said it wrong 'capitalists turn an illegal drug into record profits and want to shut out competitors by keeping it illegal for them until they can take over the market'

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