Summary:
Legal cannabis dispensaries in NYC face high costs due to strict regulations and taxes.
Terp Bros, a dispensary in Astoria, Queens, pays 52% of its income after product costs in taxes.
Customers pay a 13% sales tax on cannabis, compared to 8.875% on alcohol.
The high cost of operating a legal dispensary leads to higher prices for consumers.
Despite challenges, legal dispensaries are gaining popularity due to the security and quality of their products.
The High Cost of Legal Weed in NYC
It's not easy being a legal cannabis dispensary in NYC. The strict regulations and high taxes are making it tough for businesses to thrive, and customers are paying the price.
Terp Bros, a licensed dispensary in Astoria, Queens, is a prime example. They pay 52% of their income after product costs in taxes, compared to 36% for traditional businesses. Customers also face a hefty 13% sales tax on cannabis, compared to 8.875% on alcohol.
The high cost of operating a legal dispensary also translates to higher prices for consumers. A jar of 91 Octane cannabis at Terp Bros costs around $60, about $7.62 more than what's available on the unregulated market. The price difference is due to the costs associated with legally operating a business, such as lab testing, childproof packaging, and tracking software.
Despite these challenges, legal dispensaries are gaining popularity. Customers like Mike Flefleh appreciate the security of knowing the origin and quality of their products.
The future of legal cannabis in NYC is still uncertain. The state is working to ease restrictions and attract customers, but the high costs and competition from the unregulated market remain significant challenges.
<br><figure aria-label="media" role="group"> <div data-testid="photoviewer-children-figure"> <img alt="Alessandro Cottone, left, and Jeremy Rivera, co-owners of the licensed cannabis dispensary Terp Bros, stand in front of shelves lined with clear bins of cannabis products." src="https://static01.nyt.com/images/2024/08/19/multimedia/19ny-costs-weed-01-htvl/19ny-costs-weed-01-htvl-articleLarge.jpg?quality=75&auto=webp&disable=upscale" srcset="https://static01.nyt.com/images/2024/08/19/multimedia/19ny-costs-weed-01-htvl/19ny-costs-weed-01-htvl-articleLarge.jpg?quality=75&auto=webp 600w,https://static01.nyt.com/images/2024/08/19/multimedia/19ny-costs-weed-01-htvl/19ny-costs-weed-01-htvl-jumbo.jpg?quality=75&auto=webp 1024w,https://static01.nyt.com/images/2024/08/19/multimedia/19ny-costs-weed-01-htvl/19ny-costs-weed-01-htvl-superJumbo.jpg?quality=75&auto=webp 2048w" sizes="100vw" decoding="async" width="600" height="400"> </div> <figcaption data-testid="photoviewer-children-caption"> <span>Terp Bros — a licensed cannabis dispensary in the Astoria neighborhood of Queens owned by Alessandro Cottone, left, and Jeremy Rivera — sells more than 600 products.</span> <span><span>Credit...</span><span><span aria-hidden="false">Adrienne Grunwald for The New York Times</span></span></span> </figcaption> </figure>
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