NJ Medical Marijuana Got Cheaper in July 2020
NJ Medical Marijuana Got Cheaper in July 2020 – New Jersey sales tax on medical marijuana was cut to four percent on July 1, 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. Fast forward to July 1, 2021 and you will observe that their state sales tax will undoubtedly be cut much more — to two percent. Then, in 2022, it’ll be completely gone.
Don’t assume that what this means is medical marijuana will undoubtedly be totally tax-free, though. Each community is allowed to impose a two percent “transfer tax” on purchases; that said, no municipality has instituted such a tax at the time of yet.
Jake Honig Compassionate Use Medical Cannabis Act
The sales tax phase-out was a vital section of 2019’s Jake Honig Compassionate Use Medical Cannabis Act. This Act also legalized medical marijuana edibles and raised the monthly allowance to 3 ounces per patient, requiring them to re-certify once annually.
The law’s name honors seven-year-old Jake Honig from Howell who died in 2018. Medical marijuana provided the sole relief the boy could easily get from an inoperable brain tumor.
Breaking it Down
Activists say the policy of instituting a tax on medical marijuana purchases is “criminal,” as OTC and prescription medicines at traditional pharmacies do not have to impose nj-new jersey sales tax.
Significantly more than 77,000 patients are currently registered utilizing the New Jersey medical marijuana program. However, supply issues as a result of the high prices (up to $500 for just one ounce of medical marijuana) have dogged this program right from the start.
An ounce of “Green Fire OG,” for instance, applies to $440 per ounce at Curaleaf NJ, a Bellmawr dispensary. Because of the sales tax in place just before July 1, a person would fork out $29.15 in taxes, for a complete amount of $469.15.
Now, that tax paid is reduced to $17.60, for a complete of $457.60.
Just nine medical marijuana dispensaries are open round the state at this time. Other pre-approved locations take part in legal battles and cannot open yet.
What’s Next
Come November, New Jersey residents will vote on a constitutional amendment legalizing marijuana for recreational purposes. It would also allow recreational dispensaries. Some legislators are looking to pass a bill that decriminalizes weed, with an excellent of $25 for possession, prior to that date.
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