New Jersey Lawmakers Reach Deal on Legal Cannabis
New Jersey made the historic step of legalizing adult use cannabis this election. Now lawmakers are getting to work to create the new cannabis market place and adjust new Jersey cannabis law, and experts say adult use cannabis and its expected tax windfall comes just in time for budget shortages in New Jersey.
The Philadelphia Inquirer reports the Governor and legislature have struck a deal on two bills working their way through the legislature. Although details are few, the deal would set up a market place governed by the "Cannabis Regulatory Commission. One bill sets up a sliding scale for taxing cannabis. If an ounce is over $350, then it is taxed at $10. On the low end, if the ounce is less than $200, then each ounce is taxed at $60. There are two other tax points between those, the Inquirer reports. the state's 6.6% sales tax would apply to all retail cannabis sales. Sticking points do remain on social equity concerns and the number of producer licenses the state will allow.
Another bill, which passed the Senate, but was delayed in the house, due to the last minute insertion of a psilocybin amendment, made it legal to possess up to six ounces of cannabis. Due to the delays, the New Jersey Attorney General says their office would not prosecute some cannabis possession charges until after January 25, 2021.
New Jersey's Attorney General Gurbir Grewal said, “Fairness demands that we suspend prosecution of marijuana possession related cases while we await direction from the Legislature. (From Attorney General Gurbir Grewal statement)
New Jersey is expected to have the largest adult use cannabis market on the East coast. Joining Maine and Massachusetts, the market could reach up to 100 million a year Fortune says. Michael McQueeny , a cannabis attorney in N.J., told Fortune, “If we didn’t need the money before, we certainly need it post-pandemic with all the austerity measures that are being talked about at the state level due to certain budget issues because of the pandemic.” )From Michael McQueeny quote to Fortune)
