Upstate town sees benefits of cannabis tax revenue

The state Office of Cannabis Management has taken some lumps for its rollout of the legal cannabis market, raising concerns about its support for dispensaries and ability to enforce regulations in New York. But four years after the Marijuana Regulation and Taxation Act’s passage, one small town figured out a way to make the adult-use market work for them. 

Henrietta, a Rochester-area town with two cannabis dispensaries, generated about $750,000 in cannabis tax revenue in 2024 and is putting it back into the community. 

While decriminalization efforts and access to legal pot often take the forefront in discussions of the MRTA, the law also promised substantial local tax revenue – and New Yorkers are now beginning to see that promise realized. Henrietta Town Supervisor Stephen Schultz used the funds to hire an additional Monroe County sheriff’s deputy to help control speeding in residential areas and also plans to roll back property taxes for Henrietta residents next year. 

“The revenues from the cannabis tax far exceeded our expectations,” Schultz told City & State. “So now, not only can we fully fund the position, but we can now start to offset some costs that would normally be borne by our residents through property taxes. In fact, due to the high inflation, we had to increase the property tax levy last year. It was not a big increase, but it was our first increase in seven years that wasn’t tied to a ballot referendum, one to build the library and one to build the spray park, albeit six years apart. Had we known the amount of revenue we were to receive from cannabis, we could have eliminated that increase.”

Other municipalities in New York that opted into the MRTA, like Kingston, have also discussed how to use cannabis funds once the revenue finally comes in. Over the past few years, issues with cannabis licensing meant that amassing the sort of tax receipts that Henrietta did was more of a pipe dream than reality. But towns like Henrietta, with its two adult-use dispensaries and more on the way, are now figuring out ways to address affordability and public safety concerns with cannabis tax dollars, in ways unthinkable just a decade ago. 

Schultz streamlined the process for dispensary owners like Martin to do business, and the town is reaping the benefits, even though the town did not opt in to allowing on-site consumption centers, coincidentally, because it could make the roads less safe. He even kept the location of MJ Dispensary and RISE, the town's two dispensaries, in mind. 

“We decided that, rather than stick these companies in an 'adult use zone' way off the beaten path, we chose a subset of our commercial district where there were no churches, parks, playgrounds or residences, and said they could set up shop there,” Schultzs said. ”I think that good retail visibility is why we have had a lot of shoppers in Henrietta as well as why the shops are doing well, since they are easy to get to and in a safe and well-traveled area.”

Ryan Martin, the owner of MJ Dispensary, said that after the rough rollout of the legal market, it’s been heartening to see that the success of his store is having a positive knock-on effect on the community. Martin added his dispensary averages 15,000 customers per month and from the profit generated, 3% goes to the town and 1% to Monroe County. 

“I couldn't be more proud and blessed to be able to help out and help people see maybe no taxes raised, or even a possible reduction in taxes in the future,” he said. 

Given the history of the criminalization of marijuana, there’s some irony in the fact that cannabis tax revenue is now funding law enforcement positions, but the benefits for towns like Henrietta are undeniable and could be replicated across the state. 

“It's almost mind-boggling to me to come from the bottom, and now we're at the top,” Martin said. “We're just very, very thankful to be a part of this cannabis industry and promote the power of this plant, which has had this huge stigma on it for 70 years.”