How is medical marijuana taxed differently than recreational marijuana?

In New York, medical marijuana is taxed differently than recreational marijuana. This is due to the different regulations and restrictions that apply to each form of marijuana. Medical marijuana is provided to a patient to separate medical purposes. This form of marijuana is exempt from tax as it is a medical necessity for some individuals. The product is taxed at the wholesale rate of 7% when purchased by the distributor, however no additional taxes are added for when the product is sold to the patient. On the other hand, recreational marijuana is taxed in a more complex and stringent manner. This form of marijuana is treated like other consumable products and is subject to stringent taxes from the state. This tax is 19% on sales of the products, and an additional 10.25% local tax may also be added on if the purchase is made in a city like New York City. This tax is imposed on top of the taxes already collected when the marijuana was purchased by the distributor. The differences in taxes between medical and recreational forms of marijuana are important due to the fact that medical marijuana serves a different purpose than recreational marijuana. This separation of taxes helps to ensure that medical marijuana is solely accessible for medical purposes, rather than recreational ones.

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How is medical marijuana taxed differently than recreational marijuana?

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