In the end, Schuylerville did nothing, and that’s something.
The Village Board of Trustees chose not to vote on marijuana dispensaries (similar to liquor stores) and on-site consumption (similar to bars but with marijuana instead of alcohol) in the village, so under state law, both activities will be allowed. They took the non-action after a public hearing on the topic Dec. 21.
"I feel that we listened to the residents of Schuylerville, both on social media and through the public hearing, who voiced their opinion to opt in to onsite consumption and dispensaries," mayor Dan Carpenter said in an interview after the hearing.
Municipalities do not actually need to “opt-in," but can do what Schuylerville did—not vote at all—and the state law allowing sales and on-site use applies. Saratoga Springs has done the same. The City Council never took a vote and have been "opted-in" automatically. The Town of Saratoga opted-out of on-site consumption but is allowing retail sales.
Carpenter said that people understood that pot would come to the village anyway since it is legal in the state, and the village should have some oversight.
Trustee Whitney Colvin made two motions after the hearing, one to opt-out of on-site consumption and another to opt-out of both sales and on-site consumption, but neither found a trustee to second the motions, so both motions failed, Carpenter said.
This all falls under the state’s Marihuana Regulation and Taxation Act, signed into law by then-Gov. Andrew Cuomo earlier this year. Since the village did not opt-out, it may get a portion of the various taxes on the product, including the sales tax, especially if a dispensary is inside the village borders.
[See our coverage of the marijurana tax here.]
However, the regulations of the state law have not been worked out by the state Cannabis Control Board which oversees sales and on-site serving. This has given a number of localities in the state pause.
A locality that has opted-out of sales or on-site use can opt-in later. The argument for some around the state has been to opt-out until the control board makes clear regulations and then reassess the decisions.
Leona Colvin made this argument during the public hearing. She was the only person in the public hearing of about 12 to speak against sales and cafes. Leona Colvin is the village’s Zoning Commission chair and is married to Trustee Colvin. She said she had no problems with use but defined her stance as a quality of life issue. She worried about what the state might mandate.
“For you to make a decision with information you don’t have is irresponsible as the protectors of the village and its residents,” she told the board.
But other arguments, especially around tax revenue, won the day.
Bill Baker told the board that he has been using on-and-off since his early teens in the 1960s and that pot has helped him with back surgery. He goes to Massachusettes to buy legally now, he says.
“Whether I buy it here or in Saratoga [Springs], I’m still going to use it at my house…so we might as well have some of the money coming in."
The village board will have to work together to make sure the commercial outlets fit well into the village.
“We just need to work as a team,” Carpenter said, adding later, “Zoning would help.”
Earlier this month, Schuylerville held a public hearing on a zoning ordinance that outlines where businesses, residences and other facilities can be located.
The village currently has no zoning code, but the board of trustees will hold a public hearing on the proposed ordinance in January and is planning a vote on it.
How the tax revenue from marijuana sales is divvied up is a bit confusing. Here’s a rundown from New York’s Association of Towns:
- Town opts out, but village within town has sales = town does not get revenue
- Town does NOT opt out [ie: they opt in] and the village within town has sales = revenue from village sales is split pursuant to an agreement or, by default, 50/50
- Town does NOT opt out, the village DOES opt out, and sales take place within town = town gets revenue, does not have to share with village
- Town does NOT opt out, the village does not opt out, but retail sales only take place in town = town gets revenue, does not have to share with village.