New York cannabis business compliance guide

In this guide, we'll cover:
Legally reviewed by:

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Dutchie does not provide compliance advice. Merchants are responsible for their own compliance. External Dutchie compliance documentation may be updated from time to time and has been prepared for informational purposes only, is not intended to provide, and should not be relied on for, tax, legal or compliance advice. Merchants should consult their own tax, legal and compliance advisors to determine how best to operate within the cannabis industry.

Market Type

In New York, cannabis is regulated by the Office of Cannabis Management (OCM). Medical and adult-use cannabis is allowed. Only certified patients with a New York State registry identification card may purchase approved medical cannabis products in New York State.

InventoryΒ 

New York does not currently have an external state traceability system for their adult use market. However, they are in the process of implementing BioTrack as their seed-to-sale state traceability system. In lieu of an adult use state traceability system, adult use dispensaries are currently required to submit weekly inventory reports to OCM. Medical cannabis sales and patient allotments are currently tracked in MCDMS.Β 

Purchase Limits

Adult-use

A retail dispensary shall not knowingly sell any amount that would cause the consumer to be beyond their legal possession limit.

  • 3 oz cannabis (flower)
  • 24 g concentrated cannabis (including edibles and concentrates)

Dispensaries are able to sell the full amount of each category so they may sell to a single consumer, 3 oz of cannabis and 24 grams of concentrated cannabis

Medical

Medical dispensaries may not dispense more than the certified patient’s 60 day supply determined by their medical professional

Taxes

Adult-use

Retail:

  • 13% Retail excise tax (9% state and 4% local)Β 
  • Distributors: Potency Tax

Tax on distributors:

  • Five-tenths of one cent ($0.005) per milligram of THC in flower
  • Eight-tenths of one cent ($0.008) per milligram of the amount of THC in concentrates

Medical

  • 7% gross receipts tax

Delivery

Payment

  • Prepayment of delivery orders required

Delivery Operations

  • Delivery employees shall not leave for deliveries until they have received at least one delivery order.
  • An enclosed vehicle belonging to a licensee may have up to $20,000 of cannabis products at any time. Non-enclosed vehicles (bikes, scooters, foot, etc.) may only have up to $5,000 of cannabis products at any time.
  • At least 30% of cannabis products in the possession of a delivery employee’s vehicle must be ordered and paid for by customers by the time the delivery worker leaves the licensed location. For the purposes of this guidance, the value of cannabis products must be determined using the current retail price of all cannabis products carried by, or within the delivery vehicle of, the cannabis delivery employee.
  • Non-vehicle delivery is allowed
  • Only 25 full time employees may engage in deliveries per week, per dispensary.

Things to Note

Consent to collect customer information

Customer consent is required in order to collect customer personal information for marketing and advertising purposes

Advertising/Marketing

Licensees cannot advertise giveaways, discounts, price reductions, point-based reward systems or customer loyalty programs. Discounts are allowed but cannot be promoted/advertised.

State Resources

OCM compiles their adult use regulations here and their medical regulations are here

New York

FAQs

How much does it cost to open a dispensary in New York?

How long does it take for applications to be reviewed?

How many licenses do we expect New York to issue?

Has New York identified what the application will look like?

How will the office evaluate applications?

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