The Marihuana Regulation and Taxation Act (MRTA) was signed into law on March 31, 2021, legalizing adult-use cannabis (AUC), also referred to as marijuana or recreational marijuana, in New York State. MRTA also establishes rules for the collection and subsequent distribution of taxes collected from the retail sale of AUC.
All counties and New York City are eligible to receive tax revenue from the sale of AUC products sold within their jurisdiction. The Office of the State Comptroller (OSC) is responsible for making AUC tax revenue payments to counties and NYC. We anticipate that most of the revenue associated with these payments will be distributed in January, April, July and October after AUC retailers have filed their quarterly tax returns and remitted payment of taxes due to the State Department of Taxation and Finance (Tax). However, distributions may be made in other months, depending on when returns are filed with Tax.
Counties will retain 25 percent of the AUC tax revenue that is distributed. Counties then have 30 days to distribute the remaining 75 percent to cities, towns and villages that host a retail AUC dispensary within the county. Cities, towns and villages will receive AUC tax revenue based on a proportion of AUC product sales within the county.
OSC is not responsible for distributing AUC tax revenue to cities, towns and villages.
For Counties and NYC
- OSC will deposit AUC tax revenue for counties and New York City into the same bank account in which sales tax distributions are deposited. Counties which would like these funds distributed to a separate bank account should log into the Statewide Financial System (SFS) Vendor Self-Service Portal at: https://esupplier.sfs.ny.gov/psp/fscm/SUPPLIER and update the location code to OSCAUCDIST.
- If you do not have a SFS Vendor Self-Service account, contact the SFS Helpdesk at 855-233-8363 or through email at [email protected].
- OSC will deposit AUC tax revenue for counties and New York City into the same bank account in which sales tax distributions are deposited. Counties which would like these funds distributed to a separate bank account should log into the Statewide Financial System (SFS) Vendor Self-Service Portal at: https://esupplier.sfs.ny.gov/psp/fscm/SUPPLIER and update the location code to OSCAUCDIST.
AUC Map Call Out
Other AUC Resources
- Interactive AUC Map
- Displays the number of AUC retail dispensaries by county and AUC revenues, broken out by New York City and the rest of the State.
- OSC Accounting Bulletin on AUC Tax Revenue
- OSC Report, June 2023, "Local Governments and Recreational Adult-Use Cannabis in New York State"
- State Office of Cannabis Management (OCM)
- Local Government
- Adult-Use Cannabis
- For local governments with questions or comments about AUC, you can email OCM at: [email protected]
- State Department of Taxation and Finance
- Tax Law
- Section 496-a
- Section 496-b
- Interactive AUC Map
