Saturday, September 26, 2020

NJ medical marijuana sales tax dropping on July 1

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The New Jersey gross sales tax on medical marijuana will likely be minimize to four% on July 1, down from 6.625%, step one in a three-year plan to section out state taxes on medicinal hashish purchases.

On July 1, 2021, the state gross sales tax will likely be diminished much more — to 2%. In 2022, it will likely be fully erased.

That does not imply medical weed will be fully tax-free: Municipalities are nonetheless permitted to levy a 2% “switch tax” on purchases inside their borders, although no city has instituted such a tax but.

The gross sales tax phaseout was a key part of last year’s Jake Honig Compassionate Use Medical Cannabis Act, which additionally legalized medical marijuana edibles, raised the month-to-month allowance to three ounces per affected person and required them to re-certify simply as soon as a yr.

The regulation was named after Jake Honig, a 7-year-old from Howell for whom medical marijuana supplied the one aid from an inoperable mind tumor. Honig died in 2018. 

Activists have decried the coverage of instituting any tax on medical marijuana purchases as “felony,” since over-the-counter and prescription medicines at conventional pharmacies are exempt from New Jersey gross sales tax. 

“How dare we use the time period ‘medical’ and cost poor individuals and dealing individuals and households gross sales tax on one thing that helps them really feel higher,” Sen. Robert Singer, R-Ocean, said last year when the invoice was up for a vote. He voted for the invoice. 

Over 77,000 sufferers are registered with the New Jersey medical marijuana program, however provide points — and the ensuing exorbitant costs, as much as $500 for an oz of medical marijuana — have plagued this system from its inception. 

For instance, an oz of “Inexperienced Fireplace OG” at present retails at $440 per ounce at Curaleaf NJ, a dispensary in Bellmawr. With the present gross sales tax, the affected person would pay $29.15 in taxes for a complete of $469.15.

After July 1, that tax paid would drop to $17.60 for a complete of $457.60. 

Solely 9 medical marijuana dispensaries are currently open statewide, with different pre-approved areas held up in authorized battles. 

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In November, New Jerseyans will vote on a constitutional modification that might legalize marijuana for leisure functions and allow leisure dispensaries.

Some legislators hope to pass a bill to decriminalize weed, with a effective of as little as $25 for possession, earlier than then. 

Mike Davis has spent the final decade masking New Jersey native information, marijuana legalization, transportation and principally no matter else is happening at any given second. Contact him at mdavis@gannettnj.com or @byMikeDavis on Twitter.

Learn or Share this story: https://www.app.com/story/information/native/new-jersey/marijuana/2020/06/29/nj-medical-marijuana-taxes-phil-murphy/3250071001/





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