New York Bill Would Let Liquor Stores Sell Low-THC Cannabis Beverages, Taxed at 9% Wholesale and 13% Retail
- Assemblymember John Zaccaro introduced AB 10191 to allow liquor stores in New York to sell low potency cannabis beverages, creating a new tax and regulatory framework for these products.
- The bill defines low potency cannabis beverages as single-use containers with up to 5 milligrams of THC, requiring separate storage and inventory from alcoholic drinks in licensed stores.
- Sales are restricted to adults 21 and older, with enforcement coordinated between the State Liquor Authority and Office of Cannabis Management through a memorandum of understanding.
- A new tax structure includes a 9% distributor tax and 13% retail tax, with revenue allocated to regulatory bodies, small business and equity funds, illicit sales enforcement, and local governments; the law would take effect 180 days after enactment.
New York Assemblymember John Zaccaro (D) has introduced legislation that would let liquor stores sell low potency cannabis beverages while creating a new tax and regulatory structure for the products. Assembly Bill 10191 was filed today and referred to the Assembly Committee on Economic Development. The proposal amends both the state’s cannabis law and alcoholic beverage control law to authorize a new “low potency cannabis beverage retail” license endorsement for existing off-premises liquor licensees. Stores holding a standard retail liquor license under section 63 of the alcoholic beverage control law could apply to sell qualifying cannabis drinks for take-home consumption.
Under the bill, a low potency cannabis beverage is defined as a single-use beverage container with no more than 5 milligrams of total THC. The drinks would have to be manufactured at a facility licensed under the cannabis law, and liquor stores would be required to keep them in a separate, clearly designated area from alcoholic beverages and maintain distinct inventory records.
Age restrictions mirror those for other adult-use cannabis products. It would be illegal to sell low potency cannabis beverages to anyone under 21, with violations treated as a breach of existing alcohol age laws. The State Liquor Authority and the Office of Cannabis Management would be required to sign a memorandum of understanding to coordinate inspections and enforcement.
AB 10191 also creates a new tax framework. Distributors would pay a 9% tax on sales of low potency cannabis beverages to licensed retailers, while consumers would pay a 13% retail tax at the point of sale. Revenue from the 13% tax would be split among the State Liquor Authority, the cannabis revenue fund for small business and equity support, enforcement against illicit sales, and the local governments where the sales occur.
If enacted, the measure would take effect 180 days after becoming law.