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Despite initial projections from early state proposals hinting that a single dispensary could bring in up to $460,000 annually, the actual revenue flowing into the city's coffers has been much more modest. Under New York State law, a 13% tax is imposed on retail cannabis sales. Of that, 3% goes directly to the local municipality (the city, town, or village) hosting the dispensary.
Peekskill Herald
The realistic breakdown of Peekskill's cannabis tax revenue reveals why local officials have raised questions about a revenue deficit relative to the number of shops opening
Peekskill Herald
Initial Collections: In the first quarter of 2025, Peekskill pulled in just $28,000 in sales tax from its first two open dispensaries.
City of Peekskill NY (.gov)
Oversaturation Concerns: The modest tax returns have sparked local debate. City council members noted that with a population of roughly 26,000, having five dispensaries creates a ratio of about one shop per 5,000 residents. This has raised concerns about market oversaturation and lower-than-expected revenue per store.
Peekskill Herald
The Illegal Market Impact: Throughout New York, local tax collections have lagged behind the rapid pace of dispensary openings due to heavy competition from the illicit market, which continues to divert business away from legal, tax-paying storefronts.
You can track Peekskill's local financial updates and upcoming council discussions on the City of Peekskill Official Website or read regional reporting on the rollout via the Peekskill Herald.
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