FAQs • Ithaca, NY • CivicEngage

Will the City receive new tax revenues when legal cannabis dispensaries open in the City of Ithaca?: Yes, once licensed cannabis dispensaries are established, the City will receive new sales tax revenues in the amount of 3% on all legal cannabis retail sales in the City of Ithaca.

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Cannabis

1. Is the sale of cannabis legal through a ‘gifting’ loophole in the MRTA?: No. Unlicensed cannabis sales remain illegal in New York. As the NYS Office of Cannabis Management (OCM) announced, “Recent media reports have described business operators selling a product or service, including club memberships, to consumers and providing cannabis as a “gift” in return. This activity is illegal. These violators must stop their activity immediately or face the consequences.” Among those consequences, OCM has announced that violators will “risk the opportunity to get a license in the legal market as well as substantial fines and possible criminal penalties.” OCM is seeking reports of violators to the OCM enforcement function, and IPD will report unlicensed cannabis sales in the city to OCM. For more information, see https://cannabis.ny.gov/news/office-cannabis-managementannounces-enforcement-action

2. Did the City of Ithaca opt out of retail dispensaries and on-site consumption businesses?: No. The MRTA law gave municipalities the option to opt out of hosting certain types of cannabis licenses; they were required to do so by December 31, 2021. The City of Ithaca did not opt out.

3. Will the City of Ithaca license cannabis businesses?: No. All licensing will be handled by New York State. https://cannabis.ny.gov/licensing

4. Will the City of Ithaca host a Conditional Adult Use Retail Dispensary?: Yes. The Office of Cannabis Management has issued a Conditional Adult Use Retail Dispensary (CAURD) license for William Jane, a business at 119 East State Street on the Ithaca Commons. When it opens this will be the first, and currently the only, business licensed to legally sell cannabis in the City of Ithaca.

5. Are cannabis-related events allowed in the City of Ithaca?: Due to the strong likelihood of violations of NYS law as administered by the Office of Cannabis Management (OCM), the City has established a policy of declining event permits at which cannabis will provided to members of the public as part of the event, until such time as OCM begins legally permitting cannabis vendors in NYS. OCM has announced that violators will “risk the opportunity to get a license in the legal market as well as substantial fines and possible criminal penalties.”

6. Will the City of Ithaca adopt new zoning regulations clarifying the time, place and manner of cannabis dispensaries and other cannabis business types?: City staff are monitoring the State’s rule-making process and will provide information to Common Council regarding options for possible zoning changes once the state publishes its rules.

7. Will the City receive new tax revenues when legal cannabis dispensaries open in the City of Ithaca?: Yes, once licensed cannabis dispensaries are established, the City will receive new sales tax revenues in the amount of 3% on all legal cannabis retail sales in the City of Ithaca.

8. How many dispensaries will the City of Ithaca eventually have?: We don’t know. It is likely that the Office of Cannabis Management will limit the number of licenses that it issues in an area, but the State has not yet provided additional information.