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 4 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. Read more:

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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ayaesam41459298 Awesome 🤣✌🏻💔

This is amazing news!

How can they be lost taxes ? ………. It’s never been taxed to begin with ! What a rubbish headline ! What it actually means to say is … When the government takes control of it all and makes it taxable , it’ll stand to make billions in gained revenue !

So it’s only breaking the law if the government doesn’t make billions of it ! Ok, that’s easy to work out then innit !

Or maybe the state should make it more affordable for people to get license to grow and sell. Do it like Michigan does...$8,000 to get a medical growing permit and $6,000 to get a recreational growing permit. The govt makes all this more difficult then it needs to be.

New York was a marvelous state when I lived there in 1986.

Legalizing and regulating cannabis is the only way to end this 'lawlessness' and bring in billions in revenue for NY. Why keep feeding the black market when we could be benefiting our economy and communities?

Free enterprise is booming ✊🏼

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