Katelyn Baker
Well-Known Member
The state is expecting to receive only $1 million in revenue from the medical marijuana excise tax this year, far less than what the Cuomo administration believed would come in when it proposed its budget one year ago.
At the time, the administration budgeted $4 million in revenue, which comes from a 7 percent excise tax on the sale of medical marijuana.
The administration's projection for the upcoming fiscal year, which begins April 1, is far more modest: $1 million. The state does not expect the tax revenue to grow over the next three years.
That means the administration is expecting the five companies licensed to grow and sell medical marijuana in the state to have roughly $14 million in combined revenue.
The medical marijuana program began in January 2016. Within a year, one of the five companies, Bloomfield Industries, was acquired by MedMen, a California consulting firm, because of its fiscal woes. The other four companies have all admitted, in varying degrees, that they are struggling.
The low projection in tax revenue signals an administration belief that little will change in the coming months even as the state Department of Health works to expand access for patients, which should, in theory, bring in new revenue.
The Cuomo administration did not respond to a request for comment.
So far, more than 12,000 patients have been certified to receive medical marijuana, though the state has not released a figure of how many of those actually purchase the drug on a regular basis and remain alive.
Even if 12,000 people were purchasing medical marijuana every month, they would need to spend roughly $100 each, every month for a year to reach the $14 million figure.
Medical marijuana is not covered by health insurance.
News Moderator: Katelyn Baker 420 MAGAZINE ®
Full Article: Medical Marijuana Tax Revenue Comes In Lower Than Expected
Author: Dan Goldberg
Contact: 703.647.7999
Photo Credit: Mary Altaffer
Website: Politico
At the time, the administration budgeted $4 million in revenue, which comes from a 7 percent excise tax on the sale of medical marijuana.
The administration's projection for the upcoming fiscal year, which begins April 1, is far more modest: $1 million. The state does not expect the tax revenue to grow over the next three years.
That means the administration is expecting the five companies licensed to grow and sell medical marijuana in the state to have roughly $14 million in combined revenue.
The medical marijuana program began in January 2016. Within a year, one of the five companies, Bloomfield Industries, was acquired by MedMen, a California consulting firm, because of its fiscal woes. The other four companies have all admitted, in varying degrees, that they are struggling.
The low projection in tax revenue signals an administration belief that little will change in the coming months even as the state Department of Health works to expand access for patients, which should, in theory, bring in new revenue.
The Cuomo administration did not respond to a request for comment.
So far, more than 12,000 patients have been certified to receive medical marijuana, though the state has not released a figure of how many of those actually purchase the drug on a regular basis and remain alive.
Even if 12,000 people were purchasing medical marijuana every month, they would need to spend roughly $100 each, every month for a year to reach the $14 million figure.
Medical marijuana is not covered by health insurance.
News Moderator: Katelyn Baker 420 MAGAZINE ®
Full Article: Medical Marijuana Tax Revenue Comes In Lower Than Expected
Author: Dan Goldberg
Contact: 703.647.7999
Photo Credit: Mary Altaffer
Website: Politico
