New York is on the verge of legalizing recreational cannabis.
Governor Andrew Cuomo and state lawmakers have reached an agreement on a plan to tax cannabis products and licensed pharmacies, Bloomberg reported on Wednesday. The agreement, the details of which are currently being finalized, paves the way for a vote that could take place as early as next week. Once successful, New York will become the 15th state to legalize recreational cannabis.
The agreements stipulate that sales tax of 13 percent is levied on cannabis sales, 9 percent of which goes to the state and 4 percent to the municipalities. (Dealers would charge an additional excise tax of up to 3 cents per milligram of THC.) The deal also applies to the creation of a cannabis management office that would be responsible for distributing licenses.
Governor Cuomo’s office has estimated that a recreational cannabis program, when fully implemented, could raise approximately $ 350 million annually. According to the Wall Street Journal, after funding the OCM and law enforcement officers trained to identify driving disorders, 20 percent of the remaining proceeds will go to treatment and public education, 40 percent to school aid, and 40 percent to school aid at one Social Equity Fund. Recreational cannabis would be legal for adults aged 21 and over.
The deal reached on Wednesday comes after years of failed attempts by the state to legalize cannabis. The pressure to pass laws increased as nearby states like Massachusetts and most recently New Jersey took action to legalize recreational cannabis. “This year we have to make it, and it is important that it is ready by the end of the budget,” Cuomo said at a press conference earlier Wednesday, adding that he and lawmakers are “a few inches” away from achieving it be an agreement. As it turned out, it was only a few hours.