The Big Apple got more money to burn thanks to legal pot sales — but the surge in tax revenue still isn't matching the growing cannabis industry, city officials said. Marijuana tax revenues were projected to hit $24 million in fiscal year 2026 — a 33% increase from the prior year, according to Mayor Zohran Mamdani's $127 billion preliminary budget plan released Tuesday.
The tax revenues from legal sales of adult-use weed were forecast to generate $33 million in the 2027 fiscal year that starts July, a 37.5% increase, the documents said. Year-to-date collections from the city's cannabis levy have skyrocketed by 50%, the revenue plan stated.
It comes as new cannabis dispensaries open, expanding access to weed products while existing shops expand their customer base, the budget plan said. But cannabis industry insiders said more tax revenue could be raised if city and state authorities cracked down on illegal pot shops and peddlers that are diverting business from licensed dispensaries.
"Collections growth has not been as rapid as the expansion in store openings because of competition among suppliers as well as lower cannabis prices. Sales per store in NYC have been dropping each quarter since the end of calendar year 2025," the mayor's budget office said.
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