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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As New York is trying to prevent Big Weed from taking over the market as it has in limited-license states like Illinois, the state’s problem with rampant unlicensed cannabis shops has drawn the attention and curiosity of the nation.

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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GretaThunberg The carbon dioxide gasoline deficiency is destroying America with the retail and aggriculture non-domestication. But cigarrettes are carbon monoxide.

The best way to have a multi billion dollar Tort suit by the various State AGs is to let BigWeed take over. Taxing sales is not turning out to be a great boon.

Too much liberty is an abuse to modern civilization.

No one has the right to regulate Cannabis , it's the same as trying to regulate coconuts , who has that right: only God ... -ER_Miele

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