Op-Ed | The crisis facing New York's licensed hemp industry | amNewYork

"Licensed hemp retailers across New York are confronting a regulatory and financial assault that threatens the survival of the hemp industry and the livelihoods of thousands of business owners. Over the past several years, the New York State Department of Taxation and Finance (DTF) issued substantial penalties, often in the hundreds of thousands of dollars, to hemp retail owners whose businesses were raided by both regulators, such as the New York Office of Cannabis Management (OCM), and armed law enforcement."

"These are not isolated incidents. They represent a systematic crackdown on an entire sector of the legal cannabis-adjacent economy. Many business owners faithfully followed licensing, labeling, and tax obligations for years, only to face six-figure penalties and public tax warrants months or even years after regulatory inspections."

"Much of the scrutiny focused on products, such as cannabis-infused chocolate bars, that were legal to sell to out-of-state customers but prohibited in New York retail stores. Even though these items were clearly segregated from local inventory, they were seized during raids and used to justify substantial tax assessments."

Licensed hemp retailers in New York are experiencing a severe regulatory and financial crisis. The New York Department of Taxation and Finance has issued substantial penalties, often exceeding hundreds of thousands of dollars, to hemp business owners following raids by the Office of Cannabis Management and law enforcement. These penalties target retailers who believed they were operating legally under existing hemp regulations. Many business owners maintained compliance with licensing, labeling, and tax requirements for years before receiving devastating tax assessments months or years after inspections. The enforcement has resulted in business closures and financial ruin for small operators. Scrutiny has focused on products like cannabis-infused items legal for out-of-state sales but prohibited in New York retail, which were seized during raids and used to justify substantial tax penalties.

Read at www.amny.com