NY Governor Would Replace Cannabis Potency Tax With Excise Tax

New York Gov. Kathy Hochul (D) wants to repeal the state’s cannabis potency tax, saying it would support expansion of the legal pot market by simplifying tax collection obligations for cultivators, processors, and distributors.

Hochul included the tax’s removal in the $233 billion budget proposal she unveiled on Tuesday, calling to replace the levy with a 9% wholesale excise tax. For vertically integrated operations, such as cannabis microbusinesses, the new wholesale excise tax would accrue on the final retail sale to consumers and be imposed on 75% of the final retail sales price.

The move wouldn’t ...