If you’re thinking about opening a cannabis retail business in New York, the first step is understanding how cannabis selling in New York works and the rules before you spend money or sign a lease. The state’s cannabis program is built to promote fairness, public safety, and economic opportunity, but navigating it can feel overwhelming if you’re new to the process.
At Seligson Law, led by attorney Ken Seligson, we work with cannabis entrepreneurs across New York to help them secure licenses, stay compliant, and build strong operations from day one. We understand how the law works in practice and how to position your business for success. Here’s what you need to know if you want to sell cannabis legally in New York.
Understanding New York’s Adult-Use Cannabis Program
Adult-use cannabis became legal in 2021 under the Marijuana Regulation and Taxation Act (MRTA). The program is managed by the Office of Cannabis Management (OCM) and the Cannabis Control Board (CCB), which oversees everything from issuing licenses to enforcing compliance rules.
One of the defining features of New York’s system is the two-tier licensing structure. This means you can’t own both supply-side operations (such as cultivation, processing, or distribution) and retail stores. The goal is to prevent monopolies and create more opportunities for smaller and independent businesses.
Who Can Apply for a Retail License?
Currently, New York is not accepting new cannabis license applications, except for Type 3 Processor (Branding) licenses.
Previously, retail dispensary licenses were available to:
- Social and Economic Equity (SEE) applicants
- Individuals with prior cannabis convictions
- Minority and Women-Owned Business Enterprises (MWBEs)
- Distressed farmers and service-disabled veterans
- General applicants, once priority groups have been considered
When applying, you’ll need to disclose your business and financial interests, secure a compliant location, and submit a community impact plan showing how your business will benefit the local area. An experienced cannabis attorney can guide you through each step to avoid costly mistakes.
Key Rules for Cannabis Retailers
Location Requirements
Your store must be located at least 500 feet from the nearest property line of a school and 200 feet from a house of worship. You’ll also need to comply with any local zoning rules, and the municipality must have opted in to retail cannabis sales.
Operational Compliance
Retailers are required to use a seed-to-sale tracking system to monitor inventory, sell only to customers 21 and over, and sell only products in child-resistant packaging that doesn’t appeal to minors. On-site consumption is prohibited unless you have a separate license for it.
Hours of Operation
Dispensaries cannot operate between 2:00 a.m. and 8:00 a.m.
Security Standards
You’ll need security measures such as surveillance cameras covering entrances and points of sale, secure product storage, and systems or personnel in place to deter theft and protect customers.
Taxes and Fees
New York imposes a 13% excise tax on cannabis sales, 9% for the state and 4% for local governments. You’ll also pay licensing fees, which vary depending on your business size and type. Failing to track or remit taxes correctly can lead to penalties or even losing your license.
Community Engagement
Part of the licensing process involves showing how your business will give back to the community. This might include local hiring, charitable donations, or educational partnerships. While community boards can share feedback on your application, they are only entitled to an advisory opinion and don’t have the power to unlaterally block your application.
How Long Does Licensing Take?
Applications can take several months to process. To avoid delays, make sure you have control over your proposed site, confirm it meets all zoning requirements, and provide complete and accurate information on your license application. Having a cannabis business lawyer review your application before submission can save time and prevent costly setbacks.
Common Pitfalls to Avoid
- Signing a lease before confirming the location meets all requirements
- Underestimating the capital needed for build-out and day-to-day operations
- Failing to gain local support early on
- Overlooking insurance, banking, or compliance obligations
At Seligson Law, our attorneys ensure you are on the right track by helping you navigate complex regulations, prepare for launching your business, and address potential issues before they become major problems.
Contact Our New York Cannabis Lawyers at Seligson Law Today
Starting a cannabis retail business in New York is possible, but it takes planning, patience, and a clear understanding of the rules. The application process is full of obstacles, and small mistakes can cause big setbacks.
At Seligson Law, we work with dispensary owners and applicants every day to help them navigate licensing, negotiate leases, and prepare for inspections. Our goal is to help you avoid costly mistakes and move forward with confidence.
Schedule a consultation today by calling 213-293-6692 or emailing intake@seligsonlaw.com.
FAQs
1. Who is eligible to apply for a cannabis retail license in New York?
Anyone with a qualifying New York presence — such as being incorporated or based in the state — can apply. The state gives priority review to Social and Economic Equity (SEE) applicants, which include:
- People from communities disproportionately impacted by past cannabis enforcement
- Minority- or women-owned businesses
- Distressed farmers
- Service-disabled veteran–owned businesses
- General applicants may also apply
2. Can I own both a dispensary and a cultivation business?
No. Under New York’s two-tier system, you cannot hold both supply-side and retail licenses. This separation is meant to prevent monopolies and encourage small business opportunities. If you want to own both retail and cultivation, you need to acquire a microbusiness license.
3. What are the main location restrictions for dispensaries?
Stores must be at least 500 feet from the nearest school groundsand 200 feet from houses of worship, in municipalities that have opted in, and in compliance with local zoning rules.
4. What compliance systems are required for retail operations?
Dispensaries must use seed-to-sale tracking, restrict sales to adults 21+, and ensure all products are sold in state-approved, child-resistant packaging.
5. How long does it take to get a retail license?
Approval can take several months to years, depending on the completeness of your application and state backlogs. Having your site and documentation ready helps reduce delays.
6. Why should I hire a cannabis lawyer for the retail licensing process?
A lawyer can guide you through licensing, lease negotiations, compliance planning, and inspections, helping you avoid mistakes that could cost you time, money, or even your license.
