The state of New York is expecting to collect a whopping $1.25 billion in cannabis taxes and fees over the next half-dozen years, according to a state budget forecast that looks ahead beginning in 2023.
According to the New York Post, Gov. Kathy Hochul’s administration is expecting only $56 million in marijuana revenue in 2023, primarily from business license fees and associated revenue.
After recreational marijuana sales begin and taxes start rolling in, which is expected to happen sometime next year, state revenue is forecast to jump dramatically, up to $363 million in 2028.
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Adult-use marijuana will be taxed based on a sliding scale of THC potency, with stronger products taxed at a higher rate.
The state will also levy a 9% excise tax on top of the 4% excise tax local governments will collect, the Post reported.