Jason Klimek, Cannabis Team co-leader, co-authored the Tax Stringer article “Cannabis Taxes in New York State: How High Is Too High,” which explores how the federal tax code and New York State’s forthcoming adult-use cannabis tax rates will impact the state’s cannabis industry. The article breaks down the different tax rates, which are dependent upon the products sold by the distributor. Notably, the state’s estimated tax rates would place retail prices around twice the illicit market prices.
“In New York State, the combination of 280E and complicated THC potency taxes, resulting in some of the highest cannabis tax rates in the nation, will continue to be an issue for industry participants that will make competition with the illicit market difficult.”
To learn more about the implications of the tax structure included in the Marijuana Regulation and Taxation Act (MRTA) and Section 280E of the Internal Revenue Code and to read the full article, click here.