Marijuana.JPG

Marijuana plant.

(Getty Images)

SYRACUSE, N.Y. - Forget lucrative tax-free offers for new and expanding businesses.

What some companies really want to do in New York is grow and sell pot.

On Tuesday, the state announced that 43 companies have applied for just five spots to be sanctioned growers and distributors of medical marijuana in New York. During a six-week window, those companies filed copious paperwork and paid $10,000 a pop each for the opportunity to be considered as a legitimate New York marijuana manufacturer and distributor.

Compare that with Gov. Andrew Cuomo's generous tax-free offers under Start-Up NY. Since opening for business about 18 months ago, just 121 companies have qualified for as much as a decade's worth of tax-exempt status in New York.

So far, at least two companies want to grow pot in the Syracuse area, while three in Central New York have qualified for Start-Up NY benefits.

The Start-Up NY program rewards new or expanding qualified companies by erasing their sales and income taxes for as many as 10 years. Supporters of Start-Up NY say the program will help the state rebuild its tax-heavy image. Give Start-Up time, and companies will come.

"Look at this three years from now," Howard Zemsky, president and CEO of Empire State Development and commissioner of the state Department of Economic Development, said in defending Start-Up's slow start. "Look at it four years from now. We are changing the way people think about New York."

At the same time, Cuomo has also faced heavy criticism for spending millions of dollars trying to sell the program. State Comptroller Tom DiNapoli this spring criticized Cuomo for spending $45 million in taxpayer money to advertise the program.

New York is not offering potential pot growers tax-free status. In fact, businesses have to pay to get permission to grow marijuana and distribute it at up to four locations.

Winning marijuana businesses will pay New York $200,000 each to operate under heavy scrutiny and regulations. If New York authorities get a whiff of wrongdoing, they can immediately halt commerce.

Clearly, Start-Up NY can continue to grow. So far, those 121 companies have promised to create more than 3,300 jobs and invest $197 million, according to release from Cuomo's office last week.

"START-UP NY is changing the game for attracting businesses and creating jobs, and today we are continuing to see the program deliver results for New York's economy," Cuomo said in the June 2 news release.

Contact Teri Weaver anytime: Email | Twitter | 315-470-2274

