4%

June 24, 2020 | Number of The Day
New tax rate on sales of medical marijuana in NJ as of July 1

The sales tax on medical marijuana will drop to 4% from its current 6.625% on July 1, part of a phased elimination of the levy that was embodied in the 2019 redo of the state’s medical cannabis system called the Jake Honig Compassionate Use Medical Cannabis Act.

Under the measure, billed as a sweeping reform New Jersey’s Medicinal Marijuana Program to expand patient access to medical marijuana, the rate will drop to 2% as of July 1, 2021, and then to zero as of July 2022.

Among other reforms, the law — approved with bipartisan support — raised the limit on how much of the drug could be dispensed to any individual and for authorizations to last for a full year, rather than just 90 days.

Jake Honig was a 7-year-old from Howell who died of cancer and, according to his family, suffered from being denied sufficient access to medicinal marijuana to ease his pain.