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The state has levied more than $25 million in fines against unlicensed smoke shops for selling cannabis products since last year, but so far only a minuscule percent of those fines have been collected by both the state Tax Department and the Office of Cannabis Management, THE CITY has learned.
The two agencies were granted greater authority last year to enforce the 2021 cannabis law and began joint raids against smoke shops for selling cannabis products without a license last summer. They levy and collect fines separately, however. Fines may be levied against individuals who operate the smoke shops or the business itself when it’s difficult to track down an owner.
The Office of Cannabis Management (OCM) said it has collected $22,500 in fines from unlicensed shops. The Department of Taxation and Finance has collected $0 in fines so far, said sources familiar with the state’s enforcement progress.
Last October, THE CITY reported that the state cannabis agency, citing a lack of resources, had paused the enforcement hearings that follow state agency raids on unlicensed shops. Lawyers for unlicensed shops told THE CITY at the time that they had received notices on behalf of their clients that the cases were being withdrawn. Meanwhile, the raids have continued.
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