Not That High: New York's Marijuana Taxes Among Lowest in the U.S.
New York State's imposed taxes on future recreational use marijuana products rank among the lowest in the nation, according to a report comparing taxation in states that have legalized the use of cannabis.
Although New York has yet to begin the legal sale of marijuana through dispensaries, The Tax Foundation shows the state's three potency taxes and one sales tax, set to take effect when sales begin, to be among the lowest of the 19 states where sales are legal. New York's 9% excise sales tax, on the retail price, is the third lowest behind Colorado (3%) and Illinois (7%). In addition, New York's $0.03 per milligram potency tax on THC edibles and $0.005 per milligram potency tax on THC in flowers put the state on par with Connecticut, the only other state with similar tax structures on the same products. New York State also has a $0.008 per milligram potency tax on THC sold in concentrates, the only state to have such a tax.
Of the 19 states where marijuana is legal, 13 carry an excise tax only, a flat sales tax rate on the retail price of THC products specifically. The state of Washington, 37%, has the highest excise tax.
Virginia and Rhode Island join New York to become the three states where legalization has occurred, and taxation structures have been set, but sales have yet to begin.