CJBS intricately understands the tax and accounting challenges of state-legal medical and adult-use cannabis businesses–and we are here to serve as your partner in navigating those challenges. The cannabis industry is unique, as is your business. That’s why the CJBS Cannabis Team is focused on tailoring solutions to meet your company’s needs.
Whether you operate as a new or established cannabis cultivator, processor, and/or retail dispensary, our experts are here to help you grow and scale your business in today’s ever-competitive environment.
Both medical and adult-use cannabis are legal in the Empire State. New York’s limited medical program has been serving patients since 2014. Adult-use cannabis sales began in late 2022. By 2025, New York is projected to generate more than $7B in sales.
Both markets are exempt from sales and use tax but are subject to excise taxes.
Cannabis Taxes in New York
For adult-use cannabis products, New York consumers must pay a retail level excise tax of 13% (9% state excise tax and 4% local excise tax). An excise tax is also imposed on New York distributors. The tax rate is based on potency measured by the milligrams of THC (the active ingredient in cannabis) in the product, with different rates depending on the final product type. These product types include:
Edibles (e.g., food and beverages), which are taxed at $0.03 per mg of total THC
Concentrates (e.g., vaporization oil and resin), which are taxed at $0.008 per mg of total THC
Cannabis flower (e.g., loose flower or pre-rolls), which are taxed at $0.005 per mg total THC
Medical cannabis, along with any related products purchased to administer it, are exempt from sales tax in New York. However, while registered organizations will not be making any taxable sales, they must register as a vendor in order to issue and accept certain sales tax exemption certificates. A 7% excise tax is imposed on the gross receipts from the sale of medical cannabis by a registered organization to certified patients and designated caregivers.
Seeking For Financial Solutions? We Can Help.
The CJBS team has a deep understanding of cannabis tax laws in New York City and throughout the Empire State. Working hand-in-hand with our cannabis clients, we provide a full suite of services — including compliance expertise, tax-saving solutions, and business strategies — to help you plan for long-term success.
Cannabis in New York FAQs
When do I need to hire a cannabis accountant if I want to operate in New York?
In the cannabis industry, it is always better to be proactive, rather than reactive. To help prevent your business from costly fees or even greater legal penalties, you should hire an accountant as soon as you submit your application for licensure.
Our Core Values Guide Everything We Do
Our three core values — Trust, Collaboration, and Creativity — guide everything we do at CJBS, from our innovative client work to our interactions with each other. Our team has diverse personal backgrounds and specialties, but we share a common culture rooted in these values.
Trust
Trust is essential to all our work, but the stakes can be especially high for cannabis businesses, which face a higher risk of bankruptcy and IRS audits.
Collaboration
Close collaboration with our clients, matched with consistent and proactive communication, ensures that we’re always providing you with the insights, tools, and tactics for your cannabis tax and accounting needs.
Creativity
Creativity allows us to solve our cannabis clients’ unique challenges, such as having few traditional banking options and no bankruptcy protection.
Integrity
Our firm is guided by our employees’ integrity. In a burgeoning industry like cannabis, it is more important than ever to hold ourselves to high ethical standards, and follow through on what we say we’re going to do.
Transparency
We operate with transparency by communicating to our cannabis clients with unwavering candor, honesty, and respect.
Your Cannabis Accounting Experts
Matt Bergman, CPA and CJBS senior partner, has been with the firm since 1997 and has specialized in cannabis accounting and tax services since 2015, when an existing client won a license under the Illinois medical cannabis pilot program. Matt worked hand in hand with them to help grow and scale their business, safely and efficiently. That business grew rapidly and was soon acquired by one of the country’s largest MSOs (multistate operators), and they remain a CJBS client to this day. Matt works with clients from small startups to the country’s biggest MSOs. After growing up in Deerfield, IL and Boston, MA, Matt lives in Wilmette, IL with his wife, two children, and three dogs.
Ryan Guedel, CPA and CJBS partner, has been with the firm for 10+ years, and currently works with clients in cannabis, real estate, manufacturing, construction, and distribution. Ryan coordinates due diligence engagements, carries out audits and reviews, and works on business development and taxation for the firm. A devoted professional, Ryan gives his all with each and every client interaction. His personal motto is “hard work and more hard work.” Ryan currently resides in Wheeling, Ill., with his wife Julie, son Cole Jameson, and rescue dog Pinky. He likes the area for its proximity to the CJBS offices. His hobbies include cheering on the NY Yankees, mixed martial arts, and motorsports.
Stay current on the latest Cannabis industry developments and find out what it means for you and your business.
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