NJ Medical Marijuana Just Got Cheaper

NJ Medical Marijuana Just Got Cheaper

On July 1, New Jersey sales tax on medical marijuana was cut to four percent. Down from six percent, this represents the first stage in a three-year plan designed to phase out state taxes on purchases of medicinal cannabis. Come July 1, 2021, the state sales tax will be cut even more — to two percent. In 2022, it will be phased out entirely.

This doesn’t necessarily mean medical marijuana will be totally tax-free, as each city or town in NJ can impose a two percent “transfer tax” on purchases. However, no municipality has instituted such a tax as of yet.

An ounce of “Green Fire OG,” as an example, goes for $440 per ounce at Curaleaf NJ, a Bellmawr dispensary. With the sales tax in place prior to July 1, a customer would pay $29.15 in taxes, for a total amount of $469.15. Now, that same purchase would be reduced to $17.60 tax, for a total of $457.60.

At this time, more than 77,000 patients are registered with the New Jersey medical marijuana program. However, supply issues due to high prices (up to $500 for one ounce of medical marijuana) have plagued the program from the start.

Sales Tax Phase-Out

The sales tax phase-out is part of the 2019’s Jake Honig Compassionate Use Medical Cannabis Act, which legalized medical marijuana edibles and raised the monthly allowance to three ounces per patient. The Act requires them to re-certify once annually.

The law’s name honors seven-year-old Jake Honig from Howell. He died in 2018 from an inoperable brain tumor, for which medical marijuana provided the only relief he could receive from the pain.

Activists point out that the policy of instituting a tax on medical marijuana purchases is borderline “criminal.” They say OTC and prescription medicines at traditional pharmacies do not have such sales tax. At this time, just nine medical marijuana dispensaries are open around the state. There are other pre-approved locations but they are embroiled in legal battles and cannot open their doors yet.

In November…

Meanwhile, in November, New Jersey residents will have the chance to vote on a constitutional amendment legalizing marijuana for recreational purposes, and it would also allow recreational dispensaries. Some legislators want to pass a bill that decriminalizes weed, with a fine of $25 for possession, before that date.

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