New York City could eventually see marijuana sales reach up to $1.2 billion annually, resulting in about $47 million in local tax revenue, a new report from a government-funded independent economic agency found. But the question is, how long will it take?
With an abundance of unlicensed retailers still operating in the city and lawsuits hamstringing regulators’ ability to expand the legal market, certain factors will need to change in order for New York’s cannabis industry to reach its full economic potential, the New York City Independent Budget Office (IBO) says.
There are different projections for what can be expected over the next few years, but the city Office of Management & Budget (OMB) estimates that, by the 2027 fiscal year, the market will be producing $38 million in marijuana tax revenue annually, which translates into about $950 million in sales.
That’s possible, IBO said, but only if the city doubles the rate of retailer openings. At the current rate, one shop is opening each month, or 12 on average in a year. At the current pace, those dispensaries are selling about $8.1 million worth of marijuana on an annualized basis, the report says. If that trend persists, it would
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