On March 12, 2019, Governor Phil Murphy and legislative leaders announced an agreement on the legalization of adult-use marijuana in New Jersey. This agreement sets up the possibility of a vote on adult-use marijuana legislation before March 25, 2019.
Under the agreement adult-use marijuana will be subject to an excise tax of $42 per ounce, which will be imposed on cultivators. In addition, municipalities will be eligible to receive tax revenue if they allow marijuana businesses in their jurisdiction. Specifically, a municipality with a:
- Cultivator or manufacturer will receive revenue from a two (2%) tax on marijuana in its jurisdiction;
- Wholesaler will be eligible to receive a municipal tax of one (1%) percent tax on marijuana in its jurisdiction, and
- Retailer will be eligible to receive a municipal tax of three (3%) percent tax on marijuana in its jurisdiction.
Adult-use marijuana will be governed by a five (5) member Cannabis Regulatory Commission, which would promulgate all regulations to govern the cannabis industry and oversee the application for licensing of adult-use marijuana dispensaries. Three (3) of its members will be appointed by the Governor, with the Governor’s initial appointments to serve terms of at least four (4) years and not be subject to Senate confirmation. The remaining two (2) members will be appointed by the Governor, upon the recommendations of the Assembly Speaker and Senate President.
Provisions of the bill also will aim to ensure broad-based participation in the industry for Minority and Women-Owned Business Enterprises, low and middle income individuals, and disadvantage communities.
The final text of the legislation is currently pending. Parker McCay will continue to monitor the status of the legislation. In the interim, please contact Parker McCay’s Corporate Department with any questions on how your business may benefit from the legalization of adult-use marijuana.
The content of this post is for informational purposes only and should not be construed as legal advice or legal opinion. You should consult a lawyer concerning your specific situation and any specific legal question you may have.