Get Ready to Buy Cannabis From NJ Dispensaries
At last, NJ legislators have passed the bill to legalize cannabis.
Cannabis is coming
Last week the NJ legislature passed the bill to legalize cannabis. Governor Murphy will likely sign the bill into law this week. Read the law here. The legislators have set a general timeline of about 6 months for the Cannabis Regulatory Commission to write all of the new regulations to govern the new cannabis industry.
Legislators have admitted that the law will likely require some updates, but it's definitely a good start. In total, it seems to be a good compromise between all involved parties that should hopefully protect the most vulnerable of us (minorities, small businesses, children) while allowing for a flourishing, diverse industry.
All about taxes
- Cannabis products will have the standard 6.625% sales tax. In fact, 70% of this tax will go to areas significantly impacted by cannabis-related arrests.
- Towns can levy an additional 2% municipality tax.
- The Cannabis Regulatory Commission will have the power to levy an excise tax. If an ounce of cannabis is $350 or more, the tax per ounce will be $10. That rises to $60 per ounce if the retail price of the product is less than $250.
More interesting points
- The separate decriminalization bill will allow you to legally have up to 6 ounces of cannabis.
- The number of cultivators will be limited to 37 for two years until the cap is removed.
- Some licenses will be reserved for microbusinesses, minority-owned businesses, women-owned businesses, and disabled-veteran-owned businesses.
- NJ Legislators also approved reduced sentencing for psilocybin, better know as "shrooms." The measure would reduce possession of up to one ounce of psilocybin mushrooms to a disorderly persons offense, punishable by a maximum $1,000 fine and up to six months in jail.
The future of cannabis in New Jersey
Amidst a wild year full of unexpected surprises and seemingly indefinite quarantining, the legalization of cannabis in the Garden State isn't as surprising as it may seem. We've all been waiting for this for a very long time, and it's comforting to know that NJ is finally doing its part to end the failed war on drugs.
It's going to be interesting to see how the Cannabis Regulatory Commission develops the new regulations over the coming months, and we hope a strong effort is made to keep space available for small businesses and young entrepreneurs eager to play a part in the new industry.