New Jersey’s new cannabis tax decrease is cool but what about those who still can’t afford to walk into any NJ Cannabis Dispensary? There are approximately 77,000 patients registered as medical marijuana patients in New Jersey’s program. The new tax decrease will minimize the current 6.625% sales tax down to 4%. July 21, 2021, the sales tax will once again be lowered to 4%, ultimately in 2022, the state sales tax will no longer exist. This all thanks to the Jake Honig Law, a bill in honor of canna-kid who passed away from his ailments.
I’m all for saving money! This is great news! Really, it is! BUT what about the $500 ounces of weed still being sold? As of right now an ounce that costs $500 at a New Dispensary will only have a $20 tax, compared to $33. Even in 2022 when there’s no state tax, $500 an ounce is not competing with the Black Market. Chalk this up as another win for the underground dealers. Within the last few weeks New Jersey has sped up talks of decriminalizing cannabis possession of up to a pound and legalization in November will not slow anything down. As long as New Jersey Dispensaries continue to gouge patients the black market will continue to be the #1 source for cannabis.
What New Jersey county will implement their county tax first and will it be before taxes are eliminated by 2022? Counties with dispensaries have the right to implement a 2% tax of their own, still making marijuana the only taxable medicine in the state, on top of people sitting in jail for petty cannabis possession.
Certainly a step in the right direction. But still, many steps needed.