This article first appeared in LIBN.
As state legislators are poised to end New York’s prohibition of cannabis, a new report from the Long Island Association says legalization will increase Long Island’s economic output by $878 million annually.
In addition, the LIA’s regional economic analysis expects the legalization of adult-use marijuana will create more than 7,300 jobs on Long Island that support $317 million in employee compensation.
The proposed Marijuana Regulation and Taxation Act aims to remove penalties for adult-use of marijuana and establishes a framework for controls of retail cannabis sales similar to those used by the State Liquor Authority for regulating sales of alcohol.
The economic analysis, authored by the LIA’s Chief Economist John Rizzo, extrapolates data from a recent statewide analysis by James Parrot of the New School and Michele Mattingly, Economic and Revenue Impact of Marijuana Legalization – a Fresh Look, with industry-specific data on employment, population and sales taxes for Long Island.
The LIA report was released on the heels of a digital poll conducted earlier this month that reported Long Islanders overwhelmingly support the legalization of adult-use recreational marijuana by a margin of 69.8 percent in favor to 24.4 percent opposed.
“As with any major legislation in Albany, it’s vital to our region to understand the economic impact the legislation will have whether someone supports or opposes the legalization of marijuana,” Kevin Law, president and CEO of the LIA, said in a written statement. “This analysis helps provide a forecast for what legalization could mean for Long Islanders in terms of job creation and economic benefits to our region.”
Legalization of adult-use of marijuana has already been approved by 15 states and the District of Columbia, though some are still setting up their programs.
John Durso, president of Local 338 and the Long Island Federation of Labor, AFL-CIO, said legalizing adult-use cannabis presents a meaningful opportunity for New York as the region continues to recover from the current public health and economic crisis.
“Long Island alone stands to gain thousands of brand new jobs and revenue for our municipalities,” Durso said in the statement. “We have a once-in-a-lifetime chance to create a brand new industry that will help New Yorkers in our region find financial security and rebuild through quality employment.”
Though some changes to the proposed legalization bill are likely, the law would put an 18 percent tax on retail sales of marijuana and related products containing cannabis. The proposed law also adds a 7 percent tax to sales of medical marijuana, which have been legal here since 2015. It’s expected that the state would collect at least $350 million in tax revenue in the first year of adult-use legalization.
Get our free LIBN e-alerts & breaking news notifications!
Legalizing marijuana will boost LI economic output by $878M annually, says LIA
As state legislators are poised to end New York’s prohibition of cannabis, a new report from the Long Island Association says legalization will increase Long Island’s economic output by $878 million annually.
In addition, the LIA’s regional economic analysis expects the legalization of adult-use marijuana will create more than 7,300 jobs on Long Island that support $317 million in employee compensation.
The proposed Marijuana Regulation and Taxation Act aims to remove penalties for adult-use of marijuana and establishes a framework for controls of retail cannabis sales similar to those used by the State Liquor Authority for regulating sales of alcohol.
The economic analysis, authored by the LIA’s Chief Economist John Rizzo, extrapolates data from a recent statewide analysis by James Parrot of the New School and Michele Mattingly, Economic and Revenue Impact of Marijuana Legalization – a Fresh Look, with industry-specific data on employment, population and sales taxes for Long Island.
AP Photo/Richard Vogel
The LIA report was released on the heels of a digital poll conducted earlier this month that reported Long Islanders overwhelmingly support the legalization of adult-use recreational marijuana by a margin of 69.8 percent in favor to 24.4 percent opposed.
“As with any major legislation in Albany, it’s vital to our region to understand the economic impact the legislation will have whether someone supports or opposes the legalization of marijuana,” Kevin Law, president and CEO of the LIA, said in a written statement. “This analysis helps provide a forecast for what legalization could mean for Long Islanders in terms of job creation and economic benefits to our region.”
Legalization of adult-use of marijuana has already been approved by 15 states and the District of Columbia, though some are still setting up their programs.
John Durso, president of Local 338 and the Long Island Federation of Labor, AFL-CIO, said legalizing adult-use cannabis presents a meaningful opportunity for New York as the region continues to recover from the current public health and economic crisis.
“Long Island alone stands to gain thousands of brand new jobs and revenue for our municipalities,” Durso said in the statement. “We have a once-in-a-lifetime chance to create a brand new industry that will help New Yorkers in our region find financial security and rebuild through quality employment.”
Though some changes to the proposed legalization bill are likely, the law would put an 18 percent tax on retail sales of marijuana and related products containing cannabis. The proposed law also adds a 7 percent tax to sales of medical marijuana, which have been legal here since 2015. It’s expected that the state would collect at least $350 million in tax revenue in the first year of adult-use legalization.
Other states that have more mature cannabis industries have reaped even more. In 2020, Colorado collected a total of $387 million and California collects more than $50 million a month in tax revenue from legal cannabis sales, according to NPR.
Local governments would also benefit economically once the New York law is enacted. Besides the 18 percent tax that goes to the state, the law provides for a 1 percent tax of supplier’s sales to retail dispensaries to go to the county where they’re located and an additional 3 percent tax to go to the town or village where the dispensaries are located.
The proposed legalization legislation allows for possession of up to 3 ounces of cannabis, possession of up to 24 grams of concentrated cannabis and would also allow people to grow up to six cannabis plants for personal consumption. Retailers selling marijuana would have to be located at least 500 feet from schools.
The law would also establish a state Cannabis Advisory Board, a Cannabis Control Board and a Cannabis Revenue Fund.
Though the criminal justice component of the law and marijuana decriminalization would be immediate once the legislation is passed and signed by the governor, industry analysts say it will likely take another nine to 12 months before retailers could get established and sales of marijuana to those over 21 begin.
The new law would also make it more difficult for local governments to opt out of allowing adult-use marijuana sales in their jurisdictions, requiring municipalities to hold public referendums and get a majority of voters to reject sales in their counties. In 2019, both Nassau County Executive Laura Curran and Suffolk County Executive Steve Bellone said their counties would opt out of any legalization program, eschewing any resulting tax revenue.
“It can’t be a unilateral decision,” said Melissa Moore, state director of the Drug Policy Alliance in New York. “We know from polls that the vast majority of New Yorkers, and Long Islanders as well, are supportive of adult-use legalization. So any decisions about how to proceed at the local level should be informed by the county’s residents.”
Opponents of legal weed often argue there’ll be an increase in crime, however, legalization hasn’t substantially affected crime rates in Colorado and Washington, where adult-use marijuana has been legal for nearly 10 years. Overall, violent crime has neither soared nor plummeted in the wake of marijuana legalization in those states, according to a study by the CATO Institute.
In addition, legalization seems to have little or no effect on traffic accidents and fatalities, though opponents of marijuana legalization argued it would wreak havoc on the road. Economists Benjamin Hansen, Keaton S. Miller and Caroline Weber found evidence suggesting legalization had no effect on trends in traffic fatalities in both Colorado and Washington, according to NPR.