Exclusive news and research on the wine, spirits and beer business

Northeastern Governors Look To Coordinate Cannabis Policy

October 22, 2019

The governors of New York, Connecticut, New Jersey, Pennsylvania, Rhode Island, and Massachusetts have agreed to a core set of principles on taxation, regulation, public health and enforcement, and vaping best practices as more states in the region look to legalize recreational cannabis sales.

Principally, the governors agreed to a cannabis tax structure, aiming to encourage “a stable regional market by identifying and implementing a similar overall effective tax rate for cannabis products; and incorporating tax mechanisms, such as weight based, potency based, and/or mg/thc based, to ensure price stability for licensees.”

The tax accord is partially aimed at stemming border bleed among the various states as they set up their adult-use markets. So far, Massachusetts is the only state in the Northeast to launch recreational sales, although New York, New Jersey, Connecticut, Pennsylvania, and Rhode Island are all mapping plans to do so.

Likewise, the state leaders pledged to support implementing social equity initiatives within the industry, as well as social justice reform, including expediting expungements or pardons. They also agreed to advocate for the Secure and Fair Enforcement (SAFE) Banking Act currently before Congress, which is aimed at removing uncertainty and unlocking the banking system for the industry.

“In New Jersey, we are committed to conquering the public health challenge of vaping and advancing marijuana legislation,” said New Jersey governor Phil Murphy. “These actions will be strengthened and magnified when we know there is a similar strategic approach in New York, Connecticut, Pennsylvania, and other states. Our impact is much greater when we break out of our own silos.”—Daniel Marsteller

Subscribe to Shanken News Daily’s Email Newsletter, delivered to your inbox each morning. You will also receive the Cannabis edition as part of your subscription.

Tagged : , ,

Get your first look at 2018 data and 2019 projections for the wine and spirits industries. Order your 2019 Impact Databank Reports. Click here.

Previous :  Next :