Skip to Main Content
Services Talent Knowledge
Site Search


April 11, 2023

Tax Stringer: "New York Adult-Use Cannabis THC Potency Tax"

Jason Klimek, Cannabis Team co-leader, had his “New York Adult-Use Cannabis THC Potency Tax” article published in Tax Stringer. The article notes that Article 20-C, which includes both the THC potency tax and the adult-use retail tax, was added to the New York State Tax Law when the Marijuana Regulation and Taxation Act (MRTA) was passed. 

Jason’s article details the THC potency tax, which is an excise tax paid by the retailer to the distributor in most cases, and breaks down the effective retail tax rates for flower, concentrate, and edibles. 

The article also explains that some of the largest barriers to a successful legal cannabis market in New York State are the illicit market and nonenforcement: “Since legalization in New York, thousands of shops have popped up purporting to be legally selling cannabis under dubious legal theories . . . These practice are illegal in New York and result in lower cannabis tax revenue and unfair competition with the legal market.” The state has introduced measures to combat illicit cannabis sales.

Click here to read the full article. 


Click here to sign up for alerts, blog posts, and firm news.

Featured Media


US Supreme Court Shrinks Federal Authority Under the Clean Water Act


Supreme Court Strikes Down Taxing Authorities' Right to Retain Surplus Monies in "Strict Foreclosures"


Appellate Division, Third Department, Denies Appeal and Upholds Office of Renewable Energy Siting Regulations


NYS Public Service Commission Formally Initiates Proceeding to Establish What Constitutes "Zero Emission" Under the CLCPA


NYS Appellate Court Dismisses Common Law Claims Against Contractor for Injuries Sustained by "Special Employee"


Child Victim Act Complaint Dismissed for Failure to Sufficiently Allege Special Duty

This site uses cookies to give you the best experience possible on our site and in some cases direct advertisements to you based upon your use of our site.

By clicking [I agree], you are agreeing to our use of cookies. For information on what cookies we use and how to manage our use of cookies, please visit our Privacy Statement.

I AgreeOpt-Out