The village of Saranac Lake is preparing to launch a new tax grant program funded by local cannabis sales, aiming to reinvest revenue into community organizations, events and initiatives. During Monday’s meeting, the village board refined the details of a proposed law that would allocate 75% of cannabis tax revenue toward grants, with a maximum award of $5,000. The board is expected to vote on the law on Dec. 8.
Modeled after a similar initiative launched by the town of North Elba in July 2024, the program has been championed by Trustee Kelly Brunette. She first brought the proposal forward at the Nov. 10 meeting, and the full draft law is available online starting on page 45.
Cannabis tax revenue stems from the state’s 13% tax on cannabis sales, of which 4% is local. Municipalities where sales occur receive 75% of that local tax, split evenly between the town and village. Village officials estimate around $40,000 in annual revenue. Some trustees suggested requiring a match for requests over $2,500 or having the board only vote on larger requests, though no final decision was made.
A central debate focused on whether cannabis tax dollars should support the general fund or go directly into the tax grant program. Mayor Jimmy Williams suggested the revenue could ease tax burdens by supplementing funding for housing, beautification or new business efforts. Trustee Matt Scollin, however, felt the amount of revenue is too small to significantly impact these large initiatives. Other trustees emphasized that this revenue source is unpredictable and better suited for community groups, noting that cannabis tax dollars can be spent in ways traditional tax funds cannot.
The tax grant program would support organizations that frequently seek village assistance — including civic, adult and youth centers, festivals, arts groups and community events. Scollin compared the effort to the Franklin County bed tax grant program, which he said has been inconsistent: “hit or miss,” with shifting eligibility each year. He believes cannabis tax revenue may offer a more reliable option for funding events.
Trustee Aurora White added that directing cannabis tax funds to community groups frees up general fund dollars for other priorities. With only one operational dispensary in the Tri-Lakes — Elevate ADK — the village has already accumulated nearly $100,000 in cannabis tax revenue since May 2023.
Village Manager Bachana Tsiklauri hopes to use accumulated funds to replace a snowmaking pump at Mount Pisgah, estimating the project at $300,000. White expressed hesitation about spending the full amount, and the discussion will continue when Parks Manager John Dixon speaks at the next meeting.
Applications for the tax grant program would be open to nonprofits or applicants working with nonprofit sponsors. Grants would be awarded on a rolling basis and could not be used for salaries, wages or retroactive expenses. Priority would go to projects benefiting youth, seniors and recreation, reinforcing the village’s goal of reinvesting cannabis revenue into community well-being.
by Adirondack Daily Enterprise