MJBiz - July/August 2024 - 26

INDUSTRY DEVELOPMENTS State by State
New York
Gov. Kathy Hochul's push to replace the state's potency tax on cannabis products with a flat
excise tax went into effect June 1, the beginning of the new fiscal year for the state. Most
marijuana operators in the developing East Coast market are applauding the move, which particularly
will benefit smaller retailers and processors as well as social equity licensees, industry
sources told MJBizDaily.
The tax change, implemented as part of the state's $237 billion fiscal 2025 budget, is considered
a win for consumers as well. Retail cannabis products are expected to drop in price-a
key development as state-regulated marijuana companies compete against hundreds of unlicensed
weed shops in the state, particularly in New York City.
Hochul, who has called the state's rollout of an adult-use cannabis market a " disaster, " recommended
in January that the potency tax on marijuana products be repealed and replaced
by a flat 9% excise tax.
Under the state's 2021 legalization law-the Marihuana Regulation and Taxation Act-operators
were required to pay:
* A half-cent per milligram of total THC for flower.
* Eight-tenths of 1 cent per milligram for concentrates.
* 3 cents per milligram for edibles.
North Carolina
The Eastern Band of Cherokee Indians' Tribal Council voted June 6 to allow the sale of recreational
marijuana. The vote comes less than two months after the tribe launched medical
marijuana sales.
Marijuana remains illegal in North Carolina, but Native American tribes such as the Eastern
Band of Cherokee Indians (EBCI) are permitted to establish marijuana programs on tribal lands
outside the scope and enforcement of state officials.
The EBCI began MMJ sales on April 20 at a 10,000-square-foot dispensary, Great Smoky
Cannabis Co., on the Qualla Boundary. Once recreational sales begin, the tribe's MMJ program
will continue to serve consumers with EBCI-issued cards, including non-tribal North Carolina
residents 21 and older.
Oregon
Gov. Tina Kotek signed into law House Bill 4121, extending the state's moratorium on new
marijuana business licenses. An existing pause on new licenses in Oregon had been due to
expire in April.
The Cannabis Industry Alliance of Oregon had lobbied in favor of the legislation, arguing
that too many businesses were competing in the state.
The text of the law prohibits the Oregon Liquor and Cannabis Commission from taking new
license applications unless certain thresholds are met based on the number of licenses per
Oregon resident 21 and older:
* For production and retail licenses, not more than one active license per 7,500 residents.
* For processor and wholesale permits, not more than one active license per 12,500
residents.
Oregon's legal cannabis industry has suffered from a boom-bust cycle in the face of
overproduction. The state's outdoor marijuana harvest last October yielded 15% more than in
October 2022.
26 July-August 2024 | MJBizMagazine

MJBiz - July/August 2024

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