Paterson to collect 2 percent from marijuana sales at dispensary | Paterson Times

Paterson to collect 2 percent from marijuana sales at dispensary


Mayor Andre Sayegh’s administration is moving to collect 2 percent medical cannabis transfer tax from sales at the dispensary located close to Route 20.

Municipal officials said 2% is the maximum amount the city is able to collect under state law. Municipal officials will collect approximately $120,000 per year through the new tax.

Economic development director Michael Powell said the Green Thumb Industries (GTI) dispensary on 3rd Avenue has been generating approximately $500,000 in sales per month.

The dispensary called “RiSE” opened in December 2019. But the Sayegh administration was late to present the taxing measure to the City Council.

“This could have been done earlier in the year. We could have collected that money on behalf of taxpayers,” said council president Flavio Rivera on Tuesday. “We already lost revenue.”

Council members suggested the city missed out on approximately $90,000 in revenue by not having the taxing measure in place at the beginning of the year.

Powell blamed the coronavirus pandemic for the delay.

“Regardless of Covid this should have been done as soon as this entity opened,” replied Rivera. He pointed out the Covid-19 crisis did not stop or delay Powell from presenting projects tied to the state tax credits to the council.

Powell then audibly grumbled and complained his committee did not meet.

“That’s a poor excuse,” interjected councilwoman Maritza Davila.

Davila said the tax should have been imposed months ago. She said Powell should have planned and prepared better to impose the fee.

“We were researching the tax revenue ordinance and then the pandemic arrived,” said Sayegh in explaining the delay in presenting the measure.

When the marijuana dispensary opened, company officials said 13 jobs were created. Most of those jobs were filled by Paterson residents. Median wage for the workers were $45,000 with benefits, company officials said at the time.

GTI opened both a dispensary and a growing facility in Paterson.

Rivera fast-tracked the measure and scheduled it for a vote next Tuesday. He said he doesn’t want the city to lose out on further revenue.

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  • John

    This is exactly what Paterson needs. More drugs. = more idiots

    • MarquinhoGaucho

      Actually countless studies have showed that where marijuana has been legalized, hard drug AND alcohol use has gone down between 20-50%. Remember as the Dutch say street dealers sell weed in the one hand and drugs in the other"

  • John Brown

    Now if they taxed every drug dealer 2%
    It would solve Paterson's tax and budget

    • MarquinhoGaucho

      naaah the charter schools would suck it up and still raise our taxes another 20%

    • TK Kirkland

      They do dumb-dumb. It’s called “court/probation fines-loitering tickets”….

  • HankMorgan

    Oh, the irony.

  • MarquinhoGaucho

    I am literally "Hey Mon" me have 14 jobs !! , and the welfare people cant even find one.

    • TK Kirkland

      I was being sarcastic. Good job! (Pun intended)

    • TK Kirkland

      Ahhh good one! Living Colour! Hahaha