New York’s First Cannabis Farmers Market Wrapped Up
On January 1, 2024, New York wrapped up its Cannabis Grower’s Showcase (CGS) program that started earlier last year.
Originally rolled out in August 2023, CGSs were primarily meant to help licensed cannabis farmers sell their harvested crops that sat unsold due to the delays in approving dispensary licenses. The CGSs allowed growers and processors to promote and sell their products directly to consumers. By the end of the year, $4.8 million in sales was reported across over 40 cities and towns in New York.
New York Supreme Court Lifts Marijuana Licensing Blockade
On November 27, 2023, the New York Supreme Court officially lifted an injunction that barred state marijuana regulators from processing hundreds of new retailer licenses since August. This injunction was placed after two lawsuits were filed against the OCM, both of which have now been settled.
The court decision means that the OCM can now finally begin approving licenses, clearing a long backlog.
Tax Relief for Cannabis Businesses Under 280E
On November 18, 2023, New York’s governor signed legislation to provide tax relief to New York City marijuana businesses that were previously blocked from making federal deductions under Internal Revenue Service (IRS) 280E – joining a growing number of states that have decoupled from section 280E in their state tax codes
Section 280E prevented cannabis businesses from deducting business expenses when computing taxable income under the city’s unincorporated business tax, the general corporation tax, and the business corporation tax. This change is also retroactive to tax years beginning in January 2022, providing relief for past tax liabilities as well.
New York State Regulators Significantly Expand Cannabis Market
On September 12, 2023, New York approved adult-use cannabis regulations, finalizing the official process for applicants who didn’t qualify or weren’t able to procure a CAURD license
Subsequently, on October 4, 2023, the state opened General Cannabis Licensing, enabling businesses to apply for various adult-use licenses, including cultivators, processors, distributors, retailers, and microbusinesses.
By December 2023, 6,934 applications were received with more application rounds anticipated for the future. Overall, 212 provisional retailer licenses were approved, bringing the total to 463 licensees preparing to serve the adult market, with store openings expected within six months to a year.
New York Cannabis Laws: Quick Overview of Recreational and Medical Use:
Stay informed about the latest cannabis laws in New York and understand the adult-use retail dispensary regulations set by the Office of Cannabis Management (OCM) here.