Leaning-In are 14 municipalities. Leaning-Out: 20. Opted-In: 37. Opted-Out: 102. Undetermined: 58. Upcoming Conferences: 67 (Info as of 10-7-2021)
In accordance with the Marijuana Regulation and Taxation Act (MRTA), cities, villages, and cities have till December 31 to resolve if marijuana dispensaries and hashish cafes can situate of their communities. Counties can’t resolve, and villages inside cities make their very own choices. When a city opts out, it solely binds the unincorporated areas inside these cities — not the villages themselves.
For instance, on October 3, 2021, the Village of Suffern opted out, regardless that the City of Ramapo has but to resolve the difficulty. Because the yr winds down, there shall be a flurry of recent native legal guidelines handed for these municipalities selecting to opt-out.
Opting-out municipalities imagine they’ll at all times decide again in at a later date, and whereas that could be true, if the state limits the variety of licenses issued, the opt-back-in vote could not have a lot which means.
Goodness Progress Holdings Completes First Nationwide Hashish Expungement Month
October 6, 2021 – Goodness Progress Holdings, Inc., a physician-led, science-focused hashish firm introduced the completion of its first ever nationwide hashish expungement month.
In September, Goodness Progress hosted or sponsored 4 expungement clinics in Minnesota, Maryland and New York and helped greater than 100 folks file the mandatory paperwork to get their easy, nonviolent hashish fees expunged from their information.
In New York, Goodness Progress partnered with Girls of Shade, CannaClusive, the Black Bar Affiliation and different hashish trade and authorized assist organizations to host a 30-day digital expungement clinic. The clinic additionally supplied assets for these experiencing PTSD and emotional trauma associated to their arrest and conviction. The digital New York clinic continues via Oct. 16; individuals can take an expungement pre-qualification survey or entry data and assets by visiting https://wocworldwide.com/expungement.
New York Marijuana Regulators Maintain First Assembly | Affected person Entry To Flower Hashish Authorized
October 5, 2021 – New York’s Hashish Management Board (CCB) held its first assembly on Tuesday. The general public was invited to pay attention in on-line.
Adjustments to the state’s current medical hashish program embody permitting dispensaries to promote flower marijuana merchandise to certified sufferers. Dwelling cultivation for sufferers stays prohibited and though New York Assemblywoman Tremaine Wright (D), who chairs CCB, introduced the physique is “very dedicated to drafting these rules and issuing them for public feedback, and anticipate it to be an agenda merchandise on one of many upcoming board conferences,” it was not clear when house develop rules shall be put into place.
Certified sufferers will now be capable to entry flower hashish merchandise at current dispensaries, and the $50 registration charge for caregivers and sufferers was completely waived.
The board additionally signed off on Jason Starr, who served as assistant counsel to former New York Gov. Andrew Cuomo (D) and in addition labored on the New York Civil Liberties Union to turn out to be chief fairness officer.
How Will Interstate Commerce & Competitors Have an effect on New York’s Nascent Marijuana Business
ANALYSIS
(October 1, 2021) Marijuana produced in a single state – uncooked materials or completed product, wholesale or retail – can’t be imported from, or exported to, one other state on the market. That’s referred to as interstate commerce, and every state’s legal guidelines restrict the motion of marijuana to throughout the state. Marijuana remains to be thought-about a Schedule 1 managed substance below federal legislation.
However wanting ahead to the federal legalization of marijuana, or at the least a provision permitting for interstate transactions, sends chills up the spines of native growers, processors, distributors and traders.
The Commerce Clause of the U.S. Structure prohibits state legal guidelines that unduly limit interstate commerce below a well-established doctrine created by the U.S. Supreme Court docket. Underneath this doctrine, state legal guidelines prohibiting the import and export of state-legal marijuana would seemingly be unconstitutional, if challenged.
Till that occurs although, states have an financial curiosity in defending their home-grown farmers, processing services and distribution networks.
States which have long-established rising services and established provide chains (e.g. California, Oregon) would have a value and logistics benefit over states which have extra lately legalized leisure use (e.g. New York, New Jersey), and will adversely have an effect on and even stop the event of native trade. These established states have already got an oversupply of product and manufacturing capability. Exporting cheaper marijuana grown out west to states like New York and New Jersey would hamper native efforts to ascertain native provide networks, processing crops and distribution services. Services in northern states have the added prices of local weather management as most year-round rising will seemingly happen in indoor greenhouses and different energy-hungry services.
“Interstate Commerce is the worst factor that may occur to small farmers and social fairness companies. It might profit California and Oregon to alleviate their oversupply. However, it’s a catastrophe for newly legalized states to play catch-up with a longtime provide chain infrastructure as sturdy as California or Oregon. Constructing greenhouses and outside operations take years to construct,” says Allan Gandelman, president of the New York Hashish Growers and Processors Affiliation.
“And in these two states, particularly, persons are promoting their hashish at a low price of manufacturing, which does nothing however drive the market costs to the underside. The one individuals who will survive in that system are overcapitalized large firms that may scale up and have the monetary assets to take a loss for a number of years.”
The interstate motion of marijuana should still be a while off, however in all chance shall be a actuality. Newer states have to speed up the event of their native industries to fend off competitors from established states and finally imports from Mexico and Colombia, the place rising prices are considerably cheaper.
Additionally, Interstate commerce might occur earlier than federal legalization, similar to via agreements amongst neighboring states (an concept being spearheaded by the Oregon-based Alliance for Wise Markets).
“Even with federal legalization, retail would most likely stay native via licensed retailers (much like licensed liquor shops), and Congress would seemingly ban delivery marijuana merchandise via the mail (much like nicotine merchandise),” says Marc D. Hauser is an lawyer and vice chair of the Hashish Observe Workforce on the Reed Smith legislation agency.
Federal descheduling (or rescheduling) of marijuana might shortly carry a wave of funding, consolidation and competitors, all of which might dramatically change how New York companies and state authorities may method the event and acceleration of a New York-based marijuana market.
Crains Communications Acquires Inexperienced Market Report, A Hashish Monetary Information Website
September 29, 2021 – Inexperienced Market Report launched in 2017 and averages about 150,000 web page views per 30 days. The New York-based digital media outlet makes a speciality of subjects together with hashish laws, monetary reporting and enterprise tendencies.
“We’re excited so as to add Inexperienced Market Report back to our now 21-brand portfolio,” KC Crain, president and CEO of Crain Communications, mentioned in a information launch. “They deal with the monetary, enterprise and financial aspect of the hashish trade, so it’s a pure match with our different enterprise manufacturers.”
Goodness Progress Sale/Leaseback Deal Closes
September 28, 2021 – Goodness Progress Holdings, Inc. closed on a sale/leaseback take care of Progressive Industrial Properties, Inc. (IIP) in New York. Goodness Progress reported that it offered IIP roughly 92.3 acres of land for $1.2 million. The location is subsequent to Goodness Progress’s current hashish cultivation and processing facility in Johnstown, New York, which was previously the positioning of a juvenile detention middle. IIP mentioned it plans to offer a tenant enchancment reimbursement to Goodness Progress of roughly $55 million for the development of a brand new 324,000 sq. foot hashish cultivation, processing, and analysis and improvement facility.
U.S. Home Passes SAFE Banking Laws (Once more)
September 28, 2021 – The U.S. Home of Representatives handed SAFE Banking laws by voice vote, as an modification to the Nationwide Protection Authorization Act.
The SAFE Banking modification would allow monetary establishments to help the hashish trade by explicitly allowing monetary establishments to do enterprise with hashish corporations and prohibiting the federal government from terminating or limiting a monetary establishment’s deposit or share insurance coverage solely as a result of the monetary establishment has hashish clientele.
Solely a restricted variety of monetary establishments are presently prepared to tackle the chance of offering banking providers to hashish corporations. These establishments which might be prepared to bear the chance usually cost exorbitant charges that foreclose entry to many smaller and diversity-owned entities. Consequently, the financial improvement of all hashish industries has been stymied, via decreased entry, excessive boundaries to entry, and an unwarranted and unsustaintable dependence on money transactions. Restricted banking possibility encourages and trade depending on cash-only transactions — a significant safety concern to the hashish trade and to municipal governments that host hashish associated companies.
The invoice will subsequent go to the Senate, which is working by itself model of the laws.
IRS Supplies Assets To Assist Hashish Enterprise Homeowners Efficiently Navigate Distinctive Tax Duties
September 27, 2021 – In its most up-to-date problem of “A Closer Look” the IRS focuses on the tax implications for the quickly rising hashish/marijuana trade.
Nonetheless, as a result of it’s a Schedule I managed substance, Part 280E of the tax code applies, even when the enterprise operates in a state that has legalized the sale of marijuana.
Eventually rely, 36 states plus the District of Columbia have legalized marijuana for leisure or medicinal use, or each. These states, similar to California, Washington and Colorado present tax steering for companies and we strongly encourage trade members to stay compliant with state taxes as properly. And whereas there are 14 states that also ban hashish use, the IRS expects each unlicensed and licensed marijuana companies to proceed to develop.
Whereas IRS Code Part 280E is evident that each one the deductions and credit aren’t allowed for an unlawful enterprise (marijuana remains to be thought-about a Schedule 1 managed substance below federal legislation), there’s a caveat: Marijuana enterprise house owners can deduct their price of products offered, which is principally the price of their stock. What isn’t deductible are the traditional overhead bills, similar to promoting bills, wages and salaries, and journey bills, to call a number of.
Listed here are another useful suggestions from the IRS to assist hashish/marijuana enterprise house owners:
Know your traders
There are literally thousands of folks making an attempt to get into the trade legitimately; nonetheless, there are some pitfalls with traders that enterprise house owners want to concentrate on to verify their traders don’t trigger extra hurt than good. The social stigma and federal designation as an unlawful substance have led to unregistered and “silent” financing and possession preparations throughout the trade. People related to these funding and possession preparations are also known as “useful house owners.” A useful proprietor enjoys the advantages of possession, however the property’s title or exercise is in one other identify. This creates advanced compliance challenges for the IRS and should contribute to a enterprise’s failure to file a tax return or precisely report gross receipts. IRS examiners discover the potential for these preparations throughout examination engagements.
Moreover, hashish/marijuana enterprise house owners ought to concentrate on nefarious traders who will attempt to put funds into these new companies that might trigger them to lose their complete enterprise. For instance, if one in every of these silent traders offers preliminary cash, say $5,000 or $10,000, and it grows to the place they’ll then declare possession, these companies can turn out to be complicit in laundering cash for drug traffickers.
Make sure you’re licensed
Ensure you’re licensed for no matter your location requires. Hashish/marijuana companies are extremely regulated by state and municipal regulatory companies from a licensing, product improvement and motion perspective.
File and pay your taxes on time
As talked about earlier, even when your enterprise operates with money, you might be nonetheless accountable for submitting and paying your taxes on time.
The Inside Income Code doesn’t differentiate between revenue derived from authorized sources and revenue derived from unlawful sources. It’s all revenue and is taxable and should be reported in your tax return. Nonetheless, as a result of it’s a Schedule I managed substance, Part 280E of the tax code applies, even when the enterprise operates in a state that has legalized the sale of marijuana.
However Part 280E doesn’t prohibit a participant within the marijuana trade from decreasing their gross receipts by correctly calculating the price of items offered to find out its gross revenue. For instance, a marijuana dispensary could not deduct promoting or promoting bills, however it might cut back its gross receipts by its price of products offered.
Hashish companies don’t have any exemption from their employment tax obligations, and as with different small companies, they usually have to make quarterly tax funds. These enterprise house owners ought to at all times pay their taxes on time to keep away from curiosity and penalties.
Enforcement efforts within the trade point out there are taxpayers working in segments of the trade (growers, transporters, wholesalers and retailers/dispensaries) who fail to file U.S. tax returns. These enterprise house owners ought to be conscious that non-filers are an IRS enforcement precedence.
One other of our prime enforcement priorities within the hashish trade is using cryptocurrency. Those that use it want to grasp that the IRS considers it property, and there are good points which might be taxable. Anybody utilizing cryptocurrency of their enterprise to work with a good exchanger.
Report your money transactions
As a result of marijuana is listed as a U.S. Schedule 1 drug, many companies don’t take part within the U.S. banking system and conduct transactions in money.
Hold good information
All information, similar to receipts, canceled checks and different paperwork that help an merchandise of revenue, a deduction or a credit score showing on a return ought to be stored no matter whether or not they’re tracked by laborious copy or electronically. It’s necessary for a hashish enterprise to take care of information for all bills, even these that aren’t legally deductible on the federal stage, as a result of good, well-organized information make it simpler to arrange a tax return, observe bills, substantiate gadgets reported on tax returns, and assist present solutions if a return is chosen for examination.
Last Members of New York’s Hashish Oversight Panel Appointed
September 23, 2021 – Governor Kathy Hochul introduced two appointees to New York’s hashish market oversight and regulatory panel on Tuesday, rounding out the panel.
Appointed had been Reuben McDaniel, the president and CEO of the Dormitory Authority of New York State, and Jessica Garcia, the assistant to the president of the Retail, Wholesale Division Retailer Union.
“New York’s hashish trade has stalled for much too lengthy – I’m making necessary appointments to set the Workplace of Hashish Administration up for fulfillment to allow them to hit the bottom operating,” Hochul mentioned. “I’m assured Mr. McDaniel and Ms. Garcia will serve the board with professionalism and expertise as we lead our state ahead on this new trade.”
Earlier this month, Hochul named former Assemblywoman Tremaine Wright of Brooklyn as chairwoman of the board, and former Drug Coverage Alliance coordinator Christopher Alexander would turn out to be government director.
The panel, which additionally contains legislative appointments from the state Senate and Meeting, is in control of setting rules for the state’s hashish trade, together with the sale of economic retail merchandise. The five-person board will oversee licensing, taxation and gross sales of hashish merchandise, and was created as a part of the broader legalization bundle accepted final spring. The board could have the facility of issuing or revoking licenses within the trade.
Ulster County And Hudson Valley Cities Welcome Hashish Economic system, Whereas Some Decide Out of Financial Advantages
September 22, 2021 – A significant hashish facility could also be coming to Ulster County as early as spring 2022.
Cresco Labs, a vertically built-in hashish and medical marijuana firm, is planning on growing a significant hashish cultivation, processing, packaging and distribution facility within the Ellenville space.
Cresco Labs is eyeing the previous Schrade knife firm close to Ellenville, a website which closed down 17 years in the past.
Cresco Labs says the power will make use of 300 to 400 folks. The power is predicted to be at the least 360,000-square-feet and would come with a brand new constructing for cultivation, in addition to areas for processing, packaging, distribution, and workplaces.
Ulster County has 400-plus farms and practically 60,000 acres of farmland excellent for rising hashish.
New York State cities have till Dec. 31 to decide out on permitting marijuana dispensaries or retail hashish areas of their municipalities. The Cities of New Paltz, Poughkeepsie, Newburgh and Kingston have opted in.
Poughkeepsie has not taken any motion on opting out of hashish gross sales, and is unlikely to take action.
Newburgh helps permitting dispensaries and on-site marijuana consumption within the metropolis limits.
Within the Hudson Valley, the cities of Goshen, Rhinebeck, Phillipstown, Middletown, Crawford, the Village of Chester and the Village of Chilly Spring have all opted out.
Hashish Campus Flowers in Warwick
September 22, 2021 – In an ironic twist, the Mid-Hudson Correctional Facility in Orange County shall be re-purposed as a middle for medical/leisure hashish cultivation and manufacturing. The power was closed in 2011 and the 150-acre campus was offered as “surplus state property” to a Native Improvement Firm (LDC).
Renamed Wickham Woods, there was a proper groundbreaking for Chicago-based Inexperienced Thumb Industries’ (GTI) first hashish rising facility in New York on the previous jail grounds. New York is the fifteenth state wherein GTI has established operations.
The primary part of GTI’s buildout is valued at $60 million. When the subsequent two phases are full, the whole funding shall be roughly $150 million, and an estimated 150 to 200 jobs with advantages shall be created by GTI’s, many ranging within the six-figure class. The venture is predicted to be absolutely operational by 2023.
City of Orangetown Opts Out of Leisure Marijuana Lounges and Retail Dispensaries
On June 22, 2021, by Local Law, the City of Orangetown has opted out of each marijuana lounges and retail dispensaries within the City’s unincorporated areas. The choice to decide out doesn’t have an effect on the Villages of Piermont and Nyack. As a part of the native legislation, the City formally requested the Hashish Management Board prohibit the licensing and institution of such dispensaries and consumption websites throughout the unincorporated areas of City of Orangetown.
City of Stony Level Opts Out of Leisure Marijuana Lounges and Retail Dispensaries
At a public listening to on July 14, 2021, the City of Stony Level opted out of marijuana retail shops. The choice was unanimous, with the caveat that the City may rethink after the state’s hashish management board is fashioned and rules are in place.
As there aren’t any Villages within the municipal boundaries of Stony Level, the choice to decide out impacts the whole City.
CUNY Launches Hashish Schooling Program At Brooklyn’s Medgar Evers School
September 8, 2021 – Brooklyn’s Medgar Evers School, a part of the Metropolis College of New York, is providing a hashish minor diploma program to help college students selecting to enter the authorized leisure marijuana enterprise.
College students can now enroll in “Introduction to the World of Hashish,” a prerequisite course for most of the different hashish programs on this diploma program. In following semesters, college students can select 4 programs from any of the 13 newly developed programs to earn a hashish diploma minor in one in every of 4 totally different tracks. These programs present academic alternatives not solely to MEC college students however to all college students on the different 24 CUNY campuses through e-permits. Exemplifying its core mission to offer academic workforce improvement and alternatives for financial growth, MEC’s hashish minor and forthcoming grownup training program will function the skill-building tutorial help wanted to foster new hashish leaders within the areas of testing, cultivation, enterprise, and well being. Read more…
Westchester Communities Opting Out of Marijuana Lounges and Retail Dispensaries
A number of Westchester communities have made affirmative choices to decide out of permitting hashish lounges and dispensaries inside their borders, together with Eastchester, Yorktown, Larchmont, Ardsley, Somers, North Fortress, Mt. Kisco, North Salem, Lewisboro and Bronxville.
Dobbs Ferry and the Village of Mamaroneck have plans to evaluation opting out this fall.
Each the City of Mamaroneck and the Metropolis of Rye are having public conferences on September 22, 2021 to contemplate opting out.
To maintain a public referendum in opposition to opting out, 20-25% of every group must signal a petition requesting a referendum. Thereafter a easy majority can reverse the governing physique’s determination to decide out. For supporters of opting out, there’s nothing they should do however wait and vote on the general public referendum, if one is required.
