Cannabis sales net Town of Babylon $1.2 million

Selling green is generating Babylon Town some green.

The Town of Babylon has collected $1.16 million from cannabis sales in East Farmingdale — as part of a 2021 state law — becoming the first Long Island municipality to receive revenues from the recreational dispensaries. 

Town officials say they plan to use the money to build a new chemical dependency treatment center in North Amityville.

The revenue is from nine months of sales, town officials said. When the state legalized recreational cannabis for adults 21 and older, it established a Cannabis Revenue Fund that distributes marijuana tax revenues to local municipalities. A 4% "local tax" goes to the municipalities where a store is sited. The county keeps a quarter of that revenue, while the rest goes to the town, city or village within that county, according to the state Office of Cannabis Management. The state does not have any rules on how the municipalities should spend the money, an agency spokeswoman said.

Suffolk Comptroller John Kennedy told Newsday Babylon is the first town in the county to receive revenue from cannabis sales. No Nassau towns have opted in to recreational marijuana sales, according to the state Office of Cannabis Management. Babylon is one of four Long Island towns  — Brookhaven, Riverhead and Southampton — that opted into sales. The approval process has been slower in those municipalities, and currently no cannabis stores are set to open there, officials told Newsday.

Babylon Town Supervisor Rich Schaffer said he was initially reluctant to allow recreational cannabis dispensaries. But he said his perception has changed after learning more about how cannabis can improve symptoms for people suffering physical and mental ailments.

"I was opposed . . . but now I’ve seen how we can actually utilize this revenue in very positive ways," Schaffer said in an interview.

Two new cannabis stores are set to open in East Farmingdale, joining two others in the hamlet, Strain Stars and Happy Days, that are the only state-licensed brick and mortar recreational marijuana stores on Long Island.

"For now, we’re pretty much the only game in town," Schaffer said. "I think other municipalities will either start looking at loosening their restrictions or actually start opting in."

The town plans to use the cannabis revenue to build a second location of the town’s Beacon Family Wellness center, which is in North Babylon. It could open in 2026, Schaffer said. 

Future cannabis revenue will fund center operations and as well as substance abuse counselors in schools, Schaffer said.

Municipalities should reconsider their reluctance to marijuana sales, said Gahrey Ovalle, co-founder and president of Long Island Cannabis Coalition, a trade group.

"This benefits the township as a whole and their communities because they’re able to designate those funds however they want them to be used," he said. "It’s a critical source of tax revenue. They could help address some of the pressing issues in those towns."

If more towns opt in to cannabis sales, the municipalities should devote the revenue to treatment and prevention programs, Jeffrey Reynolds, president and CEO of the Family and Children’s Association in Garden City, said.

"This is how you hedge against the downsides," Reynolds said. "Instead of just dumping these dollars into the general fund, it’s nice that Babylon understands the importance of being proactive around this and getting the word out."

Kennedy said he did not know whether the $1.16 million was just from Strain Stars, which opened in July 2023, or also Happy Days, which opened in January. 

The state did not say how much revenue it received from the East Farmingdale dispensaries. A spokesman for the state Department of Taxation and Finance did not give a breakdown, citing "secrecy provisions" involving tax returns.

Two more stores are set to open in Babylon: Planet Nugg will open on Wellwood Avenue in East Farmingdale within several weeks, said owner David Tubens, of Dix Hills, and his partner, Walter Bonilla, of Medford. 

Holy Buds, a delivery-only business, also aims to open within weeks, said owner Matthew Hoey, of Port Jefferson. The business will be based out of a warehouse in East Farmingdale.

With Tara Smith, Joe Werkmeister and Josh Needelman

CORRECTION: Babylon Town received $1.16 million from cannabis sales in East Farmingdale. Due to an editing error, the total was misstated in an earlier version of this story.