TRENTON — New Jersey’s legal weed customers continued to spend millions in cannabis taxes in the third quarter as more dispensaries began selling recreational marijuana.
New Jersey collected more than $7.7 million in taxes on cannabis purchases from July through September, the vast majority of which came from the state’s 6.625% sales tax levied on all retail purchases, according to the state Department of Finance. cannabis.
Almost $225,000 was collected in the form of the Social Equity Excise Levy (SEEF), an additional tax levied specifically on cannabis growers and wholesalers to pay out to communities most affected by the war on drugs.
Tax revenues increased by 67%. on top of the $4.6 million raised in the second quarterexpected rise as the number of medical marijuana dispensaries open to recreational customers jumped from 12 to 20.
more:Here’s where you can buy legal New Jersey weed and medical marijuana across the state
The surge in tax revenue comes amid a similar surge in overall cannabis sales, which exceeded $178 million in the third quarterincluding nearly $117 million from recreational marijuana.
With an average price of $453 per ounce in August, New Jersey’s cannabis flower is one of the most expensive legal plants in the country. But with a tax markup barely reaching 7%, the state synonymous with tax burden actually has one of the lowest taxes on cannabis.
Under New Jersey’s marijuana legalization laws passed in February 2021, the Cannabis Regulatory Commission has the ability to increase the SEEF tax, but with limits — from $10 to $60 — depending on the average price of cannabis.
SEEF will rise to $1.52 an ounce in January in line with the CRC vote earlier this year.
Municipalities can also levy a transfer tax of up to 2% on any cannabis receipts within their borders.
more:New Jersey’s legal weed is flying off the shelves. Here’s what it means for the future.
Legal weed laws require that at least 70% of all tax revenue—including all revenue from social capital excise taxes—be earmarked for investment in “hotspots,” defined as cities with high crime and unemployment rates. Municipalities can also ask the CRC to reimburse the costs of training police officers as drug recognition experts who conduct tests to determine whether a person is under the influence of drugs. Unused funds are transferred to the general fund of the state budget.
The CRC will hold public hearings next month for members of the public to provide input on how cannabis tax revenue should be spent.
In October, the CRC channeled a portion of the cannabis tax revenue fund a new cannabis training academy at the New Jersey Business Action Centera free program for entrepreneurs looking to break into the cannabis industry, including a special business development course for those with black market experience.
Mike Davis has spent the last decade covering New Jersey local news, marijuana legalization, transportation and a little bit of everything else. He has won several awards which his parents are very proud of. Contact him at firstname.lastname@example.org or @byMikeDavis on Twitter