Inspections & Enforcement

New York City zoning rules determine where a cannabis dispensary can legally operate. Retail cannabis locations must comply with both NYC zoning requirements and New York State OCM distance rules before a license can be approved. A location that fails zoning, use, or distance requirements cannot receive final OCM approval, even if the application is otherwise complete.

New York cannabis operators are regulated by more than the Office of Cannabis Management (OCM). Every dispensary must also comply with state and city laws enforced by agencies that control zoning, construction, safety, labor, sanitation, and taxes. These requirements apply at every stage, from site selection to daily operations.

Packaging and labeling compliance is one of the most common reasons dispensaries are cited, fined, or forced to pull inventory. OCM inspects every product on your shelves, and responsibility rests with the retailer, even if the issue originated with the processor or distributor. A product that does not meet packaging or labeling rules cannot be sold.

This page explains the taxes you owe, the reports you must file, and the timelines that keep a New York dispensary compliant throughout the year.

New York’s Cash on Delivery (C.O.D.) system is an enforcement mechanism used by the Office of Cannabis Management (OCM) to address unpaid supplier invoices. When a retailer fails to pay a licensed supplier, the supplier may report the delinquency to OCM. Once reported, the retailer is placed on the C.O.D. List and faces immediate purchasing restrictions until the issue is formally resolved.

This page answers: "What do I need to finish before I can open my dispensary?"

An IRS audit reviews your tax return, bank records, payroll filings, and 280E calculations. This page explains the audit process so dispensary owners know what to expect and how it unfolds.

The New York City Department of Buildings (DOB) regulates how your dispensary is built, altered, and approved for lawful use. If work is not permitted, inspected, and signed off by DOB, you cannot legally open and may be shut down at any time. These rules apply even if you have never dealt with construction, permits, architects, or Certificates of Occupancy before.

The New York City Department of Sanitation (DSNY) regulates how businesses store trash, manage waste, and maintain clean sidewalks. These rules apply daily and are actively enforced against retail businesses across the city. Sanitation violations are among the most common tickets issued to NYC retailers and can result in repeat fines if not corrected.