New York’s Delays Official Start to Selling Cannabis, But Tribal Land Sales are Available Now

New York state’s Office of Cannabis Management is facing a long delay in the much anticipated start date to officially begin selling cannabis.  The main hold up thus far has been from trying to ensure that the state’s equity goals are properly fulfilled.

But people can still buy weed legally within the state borders, specifically on Native Tribal lands.  A spokesperson for the state Office of Cannabis Management Freeman Klopott said, “Native Americans living on federally recognized, sovereign tribal land are legally allowed to operate dispensaries that are not regulated under the New York State cannabis law.”

The Tribal governments on at least four of the federally recognized Native American tribal reservations in New York have created and implemented their own policies and regulations for retail cannabis and begun selling.

Sales of cannabis on tribal land are not subjected to state retail tax, like cigarettes and alcohol, so cannabis products can be sold at a lower cost than at state-licensed dispensaries. Senator George Borrello commented, “You can see how far people will drive to save $5 on a tank of gas on native territory, how far will people drive to save $50 on a bag of weed?” And added, “That’s really going to hurt the legal market.”

Native American representatives are concerned that at some point the state will try to impose taxes on their sales. Tribal lawyer and former President of the Senaca Nation, Robert Porter said, “When we have something that’s worth money, and we’re doing well at it, the outside world wants to destroy it and tax it and regulate it to death. That’s what I’m worried about is that we need to be preparing for that fight because it’s coming.”

This has occurred before, when in 2011 former Gov. Andrew Cuomo bowed to pressure from non-native cigarette retailers who said the Tribal Nations had an unfair competitive advantage.  The state then implemented a tax on name-brand cigarettes sold to nonnative customers. Tribal lawyer Lee Redeye said "My suspicion is that eventually the stte will seek to try to tax those sales."

New York state marijuana laws include provisions for Native tribes to be able to enter into state compacs if they choose. These compacs would allow Tribes to integrate their recreational programs into the state programs, but so far none have opted to do so.  

​Native American tribes in other states are also making moves to leverage their sovereignty to regulate cannabis in states that have legalized it. So far, tribes in Washington, California, Nevada, New Mexico, Wisconsin, Minnesota and Montana have begun cannabis cultivation and sales on their own sovereign lands.

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