New York–If New York joins the growing list of states that have legalized recreational cannabis, it could become a $3.1 billion market for the Empire State.
New York state could benefit from an estimated $435.7 million in additional taxes derived from cannabis sales per year. The bulk of that money ($336 million) would be generated in New York City.
“This is a new revenue stream,” New York City Comptroller Scott Stringer said recently on CNBC’s “Power Lunch.” “This is going to impact the kinds of resources we’ll have to invest in education, to invest in healthcare.”
Stringer analyzed data from Washington and Colorado, the first two states to legalize recreational cannabis, to calculate approximately how much money New York stands to generate in new revenue. Stringer’s report concluded that with a population of 15.1 million statewide, there would be approximately 1.5 million cannabis users. About one-third of that number would come from New York City residents. Stringer is assuming that about 8-10 percent of the state’s residents are or would become cannabis consumers. He estimates that the average user would spend approximately $2,080 annually on cannabis products.
Stringer also thinks legal cannabis could increase tourism in New York as it has in Colorado and Washington. However, New York City is already one of the world’s premier tourist destinations so it is unclear if a significant number of new visitors would be inclined to visit just for legal cannabis.
According to Stringer, people are going to consume cannabis whether it is legal or not so the state should consider benefiting from sales. “Let’s not be naive,” he said. “Marijuana has been around for decades, it’s the underground economy. The state and city gets no economic benefit from it. We don’t have an opportunity to regulate it.”
“We should explore this,” Stringer said. “We don’t have all the answers. We have a lot of work to do on this.”
Currently, there are nine states that have approved recreational cannabis use, with several more expected to do so. Michigan voters will decide whether or not to legalize this November. Many expect New Jersey to legalize soon since newly elected Governor Phil Murphy made legalization a cornerstone of his campaign.
